CAPITAL STRATEGY AND
ASSET MANAGEMENT PLAN
2005/06
INDEX
Local Authority Core Data
Page
1
Background to Salford
2
2
Revenue Budget
3
3
Core Data
3
4
Maintenance Backlog
4
5
Five year Capital Programme & Resourcing Summary
4
6
Unsupported Borrowing
5
Capital Strategy
1
Introduction
6
2
Key areas of capital expenditure
6
3
Other financial implications
9
4
Cross cutting activity
10
5
Consultation
11
6
Links with other partners plans and programmes
11
7
Performance measurement and innovation
12
8
Management and evaluation
13
Asset Management Plan
1
Organisational arrangements for Corporate Asset Management
15
2
Consultation
20
3
Data Management
23
4
Performance Management and Monitoring
26
5
Programme and Plan Development and Implementation
29
6
Key Issues – Major Challenges
33
APPENDICES
Appendix 1
Appendix 2
Appendix 3
Appendix 4
Appendix 5
Appendix 6
Appendix 7
Appendix 8
Appendix 9
Appendix 10
Reporting procedure flow chart
Aims and objectives for property and associated performance indicators
Key Issues
National Performance Indicators
Use of National PI ‘s
Running costs of portfolio
Best Value Reviews/CPA Improvement Activity
Property Appraisal Model
Achievements
AMP Assessment Criteria Referencing
1
1.
BACKGROUND TO SALFORD
Salford is truly a city of contrasts. Situated in the heart of the Greater Manchester conurbation, it is of the
fastest growing regions outside London. The City is at the hub of the transport network, with M602, M60,
M61 and M62 motorways all within the City boundaries, and there are also excellent rail and air links, and
the Metrolink now extends to Eccles and Salford Quays from Manchester City Centre.
A dynamic and forward looking City, Salford has undergone radical transformation since becoming one of
the world’s first industrial cities, redeveloping areas such as the Salford Quays and building the Lowry
Centre, a multi-million pound arts and theatre complex.
Salford is a Metropolitan Borough Council with a population of 216,103 according to the 2001 Census. The
City is experiencing population loss which has significant resource implications for mainstream service
delivery. Since 1991, 14,900 people have left the City with migration levels highest in the inner city.
Over the last thirty years Salford has seen great change; losing almost a third of its traditional employment
base has created areas blighted by physical dereliction and social deprivation. However, over the last ten
years the City has been successful in tackling many of the social and physical dereliction problems. The
redevelopment of Salford Quays has created a world-class business and cultural area of great national and
regional significance. Its success has led to the fastest drop in unemployment within the Greater
Manchester region.
Within this trailblazing, vibrant City there still exists severe pockets of deprivation; Salford is placed the 4th
most deprived local authority area in the North West and 12th nationally.
22.7% of all households with children are lone parent households. The City’s dependent and elderly
populations are growing; lone parent households account for 12% of all Salford households of the
population and there has been substantial growth in the numbers of looked after children in recent years.
The number peaked in 2001 when the number was nearly double that of 1993. The actual number of
children looked after in 2004 has decreased by 6% from the peak of 2001. Latest national statistics (to 2002)
show that a decrease is against a national trend of increase but that Salford still had the sixth highest
number of children looked after per 1,000 population in England.
Due to a number of factors, including the housing market boom and a commitment to the demolition of low
demand stock, the numbers of Local Authority voids in the city have fallen considerably. In April 2003, 853
of the city’s 28500 council houses were in a lettable condition but void, by March 2004 this had fallen to 449
or 1.57% of the total stock, falling below the government recommended ceiling of 2%.
Within individual wards there are pockets of multiple deprivation, and a number of areas within the City are
currently benefiting from regeneration initiatives, supported by Single Regeneration Budget, European
Programmes and New Deal for Communities. The City, in partnership with Manchester, is a Housing Market
Renewal Pathfinder area that will bring significant resources into Central Salford to revitalise housing
markets. The Regional Development Agency and English Partnerships are also involved in developing
schemes that will bring economic and social progress to Central Salford.
We believe the council has an established reputation for its partnership working. We are confident that by
working together, listening to our communities and pooling our efforts and resources we will tackle some of
the deep-rooted and complex problems faced by local people. We were one of the first authorities to
establish a strategic partnership in 1994. Partners IN Salford is now fully accredited by Government as
Salford’s Local Strategic Partnership. We have a dynamic chair from the private sector. The Partnership
has been rationalised to focus on key priorities. The Partnership's vision, priorities and targets were set
down in Salford's first Community Plan, published in 2001.
At the local level we have a well-established partnership/area approach to our communities. Eight
community committees are in place, comprising Councillors, representatives of local community/voluntary
groups and agencies such as Greater Manchester Police and Salford Primary Care Trust. Each community
committee has a local action plan which feeds directly into the Local Strategic Partnership’s 7 themes for the
city. The alignment of service delivery by the council, PCT and police with the Council’s community
committee areas is developing further local capacity. For example, in health and social care we have
embraced the joint commissioning agenda with the PCT. There is extensive ongoing inter-agency service
development; for example in the development of the LIFT health centres with the PCT.
The Council continues to face an increasing demand for its services, particularly the care of children. These
pressures are within the context of extremely difficult financial circumstances. Consequently, the Council has
embarked on a process of reviewing its priorities and corporate objectives to ensure that these guide the
distribution of resources, the level at which it carries out its responsibilities and the way in which it exercises its
functions.
2
LOCAL AUTHORITY CORE DATA
2.
REVENUE BUDGET
The Council's gross revenue expenditure for 2004/05 is £577.516m and its net revenue budget is
£280.403m.
3. THE COUNCIL’S PROPERTY ASSETS
Operational
Cipfa Category
Other Land & Bldgs
Community Assets
Non Operational
Council Dwellings
Non Operational (General)
Surplus Property
Function
Administration Offices
Car Parks
Care in the Community
Caretakers Houses
Cemeteries
Civic Youth Centres
Community Centres
Day Care Facilities
Nursery (Early Years Centres)
Land
Landscaping
Libraries
Misc Civic Accommodation
Museums
Other ED Land
Park Building
Public Conveniences
Pupil Referral Units (PRU)
Recreational Facilities
Residential Accommodation
Special school bldg assets
Primary school bldg assets
Secondary school bldg assets
SUB TOTAL
Cemeteries
Land
Landscaping
Parks
Recreational Facility
Walkway
SUB TOTAL
No of Assets1/4/04 Total GIA SQM Total Value 1/4/04
68
64068.42
19446204
47
7840
7422511
9
742
60017
20
0
725020
7
1825.91
672952
10
3285.93
2608151
17
4228.74
1992655
16
10072.85
7806503
4
1833
1595250
65
923.6
293360
12
0
12
13
6143.16
6189502
5
1203.84
916002
2
4633.03
3496000
42
0
2037682
35
6219.83
2621542
3
106.23
138004
2
880.9
882500
21
20787.03
1455117
23
13511.96
10824005
(5 Schools)
7
13766.51
8539902
(42 Schools) 104
85966
65626327
(11 Schools) 55
81391
60981777
587
329429.94
£206,330,995
7
0
7
29
0
29
41
0
42
152
426.58
195151
42
95.42
62421
32
0
32
303
522
£257,682
963,041,329
(Beacon
27,636 Value)
Car Park
11
0
2255803
Community Centre
7
2127.86
55013
Ind/Com Bldg
40
20656.68
5946665
Ind/Com Land
244
1650.78
6636770
Ind Estates
19
66907.32
6319968
Market
2
280
4
Recreational Facility
9
0
26508
Shops
59
67762.65
3839365
SUB TOTAL
391
159385.29
£25,080,096
Administrative Offices
3
1531.17
512503
Car Park
1
0
25000
Cemeteries (Bldgs)
3
582.5
41004
Houses
28
0
652778
Museum
1
873.01
250001
Park Bldg
2
0
303000
Public convenience
2
92.4
4
Residential Accommodation
1
76.04
100001
Shops
1
0
350001
Underused/Vacant Land
215
1209.3
12671646
Underused/Vacant Property
177
4497.29
6619347
SUB TOTAL
434
8861.71
£21,525,285
TOTALS (EXCL Council Hsg)
1715
498198.94
£253,194,058
3
4.
MAINTENANCE BACKLOG
Total Requirement Over 5 years @ 2002 prices
£m
HOUSING – Dwellings/Other Buildings
EDUCATION - Schools
350
38.3
EDUCATION - Other Buildings
COMMUNITY & SOCIAL SERVICES
LEISURE SERVICES
ENVIRONMENTAL SERVICES
DEVELOPMENT SERVICES
14.14
TRANSPORT
50
5.
5 YEAR CAPITAL PROGRAMME AND RESOURCING SUMMARY
CAPITAL PROGRAMME 2004/05 TO 2008/09 - As Per Submissions
2004/05 2005/06 2006/07 2007/08 2008/09
Total
Estimate Estimate Estimate Estimate Estimate Estimate
£m
£m
£m
£m
£m
£m
PROGRAMME SUMMARY
HOUSING
EDUCATION
HIGHWAYS
SOCIAL SERVICES
ENVIRONMENTAL SERVICES
CHIEF EXECUTIVE
ARTS & LEISURE
DEVELOPMENT SERVICES
CORPORATE SERVICES
Total Programme
56.488
16.497
21.482
0.516
0.378
2.875
1.729
4.290
3.500
69.325 109.156 110.229
12.885 21.096
8.017
11.795
4.056
4.031
0.501
0.501
0.501
2.491
1.465
1.120
7.451
9.089
0.014
6.633
2.023
0.422
14.159 14.116
9.100
3.500
3.500
3.500
97.729
5.041
4.031
0.501
0.137
0.000
0.000
8.110
3.500
442.927
63.536
45.395
2.520
5.591
19.429
10.807
49.775
17.500
107.755 128.740 165.002 136.934 119.049
657.480
21.451 16.992 18.980 11.858
6.827
0.305
0.695
0.000
0.000
0.000
38.965 44.286 37.708 19.739 18.408
13.009 29.500 73.700 75.000 62.500
16.345 20.263 21.758 17.531 18.508
16.100 16.500 12.556 12.556 12.556
0.883
0.000
0.000
0.000
0.000
0.697
0.504
0.300
0.250
0.250
107.755 128.740 165.002 136.934 119.049
76.108
1.000
159.106
253.709
94.405
70.268
0.883
2.001
657.480
RESOURCE SUMMARY
Borrowing Approvals
SUPPORTED BORROWING
UNSUPPORTED BORROWING
GRANTS
GRANTS - HMRF, ALMO
USABLE RECEIPTS
MRA
HRA
OTHER CONTRIBUTIONS
Total Resources
4
6.
UNSUPPORTED BORROWING
The Council will use unsupported borrowing in prescribed circumstances, namely for invest to save
purposes, to provide temporary cover for any delayed capital receipt or Government grant, or for priority
proposals where it has considered the business case and has determined it can afford the revenue
consequences in its revenue budget. Unsupported borrowing of £400k for one project to invest in the
improvement of school kitchens and dining rooms has been approved to date, although a number of other
proposals are under active consideration for future investment utilising this source of funding,
e.g. investment in the improvement of roads and footpaths, I T investment and pump priming work to
stimulate major private sector investment in the Middlebrook area of Salford, and these and other proposals
are included in the summary capital programme above.
5
CAPITAL INVESTMENT STRATEGY
SECTION 1 - INTRODUCTION
This Capital Investment Strategy sets out what the City of Salford wants to achieve in terms of our capital
investment over the next five years, covering all key aspects of capital expenditure within the authority and
giving examples of partnering and partnership based capital scheme development and delivery. It is our
response to the Government’s drive for improved financial planning and accountability and securing value
for money from capital investment. It builds upon our last submission and takes account of comments made
by GONW.
The City Council and Partners IN Salford (the City’s Local Strategic Partnership) believe that the people of
Salford deserve the very best in terms of service delivery and quality. Salford’s first Community Plan (2001
– 2006) drawn up by the Salford Partnership sets the overall vision for our City. It sets the context for this
capital strategy with future investment priorities driven by the seven themes of the Community Plan and
developed both internally and with our partners and communities.
The Plan aims to create a clean, safe and healthy city with strong sustainable communities and a buoyant
economy, where children and young people can thrive and benefit from excellent educational and cultural
opportunities and facilities. It will enable the Council and its partners to make the best possible use of public
sector assets in order to tackle the crosscutting priorities facing our City in a strategic, partnership based
and comprehensive manner.
The Neighbourhood Renewal Strategy, the City’s framework for Neighbourhood Renewal over the next five
years, puts regeneration and mainstream service improvement at the heart of the City’s priorities and gives
a clear spatial dimension to our interventions. It aims to:



Develop an integrated strategy to regenerate Central Salford including the areas of major change in
Broughton, Seedley and Langworthy and Charlestown/Kersal
Target action to stabilise communities in Salford West and maximise opportunities
Work with our communities to achieve change.
Key targets are included within the Community Plan and the Neighbourhood Renewal Strategy to measure
the success of our policies over the next five years. These targets reflect the National Floor Targets set by
Government through the New Commitment to Neighbourhood Renewal, include key Best Value
Performance Indicators and incorporate local performance indicators designed to challenge, target and
improve service delivery in particular areas. The targets set have formed the basis of the Partnership’s
Local Public Service Agreement with Government, which was agreed in July 2002.
The Community Plan will be reviewed in 2004/05 and the Implementation Framework for the Neighbourhood
Renewal Strategy strengthened.
As a parallel to, and integrated within the Community Plan, the Council has developed 7 Pledges that are
Council priorities for both statutory and local service delivery. The impact of the pledges has involved the
re-alignment of Best Value Performance indicators and service plans to reflect an agreed corporate
approach, setting out a commitment towards: Improving Health in Salford, Reducing Crime in Salford,
Encouraging Learning, Leisure and Creativity in Salford, Investing in Young People in Salford, Promoting
inclusion in Salford, Creating Prosperity in Salford and Enhancing Life in Salford.
The Community Plan, Neighbourhood Renewal Strategy and Capital Investment Strategy together will
enable the City Council to continue the regeneration of the City and move towards high quality modern
services designed to meet local need.
SECTION 2 - KEY AREAS OF CAPITAL EXPENDITURE
Increasingly, we continue to add value to the City’s Council own capital programme and capital receipt
income by capital resources derived from funding from the NWDA and English Partnerships, from special
funding such as the Housing Market Renewal Pathfinder and from PFI. In addition, several major
developers, house builders and financial institutions are investing within the City and working in partnership
with the Council. This creates a new and key challenge for the Council to integrate our resources and
programmes more effectively and to gear the use of our own resources clearly to meet the objectives of
stimulating other investment to promote the regeneration of the City and better services. We outline below
the key areas of existing and prospective capital expenditure in Regeneration, Housing, Education,
Transport and Social Services.
6
Regeneration
The Central Salford initiative is progressing with negotiations underway to form a new model Urban
Regeneration Company through founding partners the City Council, the North West Development Agency
and English Partnerships. It is anticipated that this will bring in significant private and public resources to
assist the City’s successful regeneration, complementing the £44m that Housing Market Renewal funding is
bringing in up to 2005/06 initially.
There are existing commitments to capital spend within the City’s main regeneration programmes as follows:
 Housing Market Renewal Programme focused on Central Salford
 Objective 2 Priority 2 European Regional Development Fund Action Plan
 Objective 2 Priority 3 Economic Development Zone in partnership with Manchester City Council along
the Irwell Corridor
 SRB5 in Seedley and Langworthy
 The New Deal for Communities programme in Charlestown/Kersal
 Chapel Street Initiative
 National Lottery New Opportunities Fair Shares Transforming your space programme
 Knowledge Capital funding
In addition a number of major masterplanning exercises are underway, including with development partners,
which it is anticipated will bring in substantial private sector funding.
Housing
The launch of the “Fresh Start for Housing” sets out a new vision for housing in Salford and we are working
hard to realise that. The Housing Strategy and Housing Revenue Account (HRA) Business Plan set out
clear priorities for the City. An arms length company model (New Prospect Housing Ltd) became
operational in September 2002. New Prospect has taken over the management of housing properties and
will play a key role in bringing stock up to the decency standard by 2010.
The “Sustainable Communities Plan” has had a marked affect on future capital investment planning for
Housing in two key areas: 
We are required to have “sign off”, as determined by ODPM/CHTF, of our stock option appraisal
process by July 2005. The process was initiated during the summer of 2003 and is driven locally by the
following documents:
o
o
o

The City Council launched an overarching document “A Fresh Start for Housing” in the autumn
of 2003 which re-enforced our strategic intentions
The Stock Options Tenant Empowerment and Communication Strategy (TECS) was established
in November 2003
The Stock Option Appraisal Project Plan
The designation of Manchester/Salford as a Housing Market Renewal Pathfinder has resulted in the
opportunity for increased resources available to renew housing markets and proactively manage
neighbourhoods and make a step-change in the Housing Market in the 7 Inner City wards.
The Council’s vision is to help to ensure that every person in the City lives in a decent home and will achieve
this by:





Investment in the management and maintenance of Council and registered social landlord owned
dwellings
Working with home owners and private landlords to help them manage and maintain their properties
effectively
Work to the Government’s target of removing all non-decent public sector housing by 2010 (the stock
options work described above will facilitate this)
Work with private sector partners to reduce unfit and empty private sector housing by one third by 2004
At present Salford’s ALMO (New Prospect Housing Limited) manages council owned homes. The Audit
Commission Inspection 2003 reported that the services provided by NPHL did not attain the standard
requirement to draw down ALMO funding. Therefore the City Council withdrew from the ALMO round 2
process and all appropriate options are currently being reconsidered as part of the Stock Option
Appraisal.
7
Priorities over the next five years will be:





Tackling empty properties throughout the City
Tackling areas of major change – consistent with the corporate regeneration strategy (see later)
Dealing with pockets of deprivation to consolidate and stabilise areas (i.e. emerging from the Stock
Condition Survey)
Consolidating and maintaining popular estates and those which have benefited from major investment
Commissioning and funding the provision of specialist Housing for those vulnerable groups identified in
the most housing need through our Homelessness, Supporting People, and Black & Minority Ethnic
Housing Strategies.
Education
The Education Asset Management Plan sets out the need to provide high quality Education in
accommodation that stimulates a learning environment for school pupils and members of the community. In
the medium term the two key priorities within the education capital expenditure will be the significant
reduction of the backlog of work identified within the AMP and implementation of proposals resulting from
the removal of surplus places, and which should at the same time have an impact on raising educational
attainment.
The Directorate has completed a review of secondary places and this is in the process of
implementation. PFI credits for Buile Hill, Hope, and Harrop Fold High Schools have been secured to
replace all three schools. All three of our Special High schools have been replaced via PFI and one
opened in April, with the remaining two schools opening in September 2004.

The DfES has ambitious plans to replace or refurbish, subject to funds being available, all
secondary schools within a 10 to 15 year time frame. Salford is seeking to be in the second wave of
the major capital investment, “Building Schools for the Future” (BSF). Partnerships for Schools (PfS)
is being set up by the Department for Education and Skills (DfES) and Partnerships UK (PUK), to
implement and deliver the BSF programme. To achieve the aims of this new programme a more
strategic approach to implementation of local investment will be needed.

The review of primary school places has been completed and we are implementing the first phase
over the next two years. Ongoing consultations about future proposals are being conducted with
area review groups which are linked to the regeneration agenda.
Transport
The Unitary Development Plan and Greater Manchester Local Transport Plan set out the transport
priorities for the City and wider conurbation. The policies contained in these documents focus on safety,
sustainability and regeneration whilst conforming to Planning Policy and Regional Planning guidance.
More recently the GMLTP has collaborated with the Department for Transport and set stretch targets for
Road Safety, Air Quality, Accessibility and Congestion. Success in these areas should ensure greater
capital allocations in the coming years. Later this year the revised version of the UDP will be the subject
of a Local Public Inquiry.
The UDP and LTP objectives are summarised below:










A focus on regeneration and sustainability
An holistic approach to urban renewal
Competing in the global economy
Creating a dynamic and accessible Regional Centre
Promotion of sustainable neighbourhoods
Enhancing urban centres
Improving the urban fringe and countryside
Providing high quality sustainable transport
Reducing population loss from inner areas
Sustainable growth of Manchester Airport
Arising from these objectives are major transport schemes such as the Manchester/Salford Inner Relief
Route currently under construction at an estimated cost of £27 million and due for completion in Autumn
2004, Cadishead Way Stage 2 for which funding of some £19.7 million has now been allocated and work
has started and the Leigh/Salford/Manchester Quality Bus Corridor for which funding of £25.9 million has
been secured ( this scheme has been the subject of a public inquiry which has still to report).
8
Many minor transport schemes aimed at supporting our public service agreement by improving road safety,
promoting integration and maintaining the fabric of the networks are also ongoing, running at approximately
£4 million per annum.
Social Services
Social Services’ capital strategy is supporting the improvement of life chances and promoting the
independence of people in Salford, through a whole system approach towards Health and Social Care.
The Authority continues to build on its partnerships with users/carers, Salford Primary Care Trust, NHS
Trusts, the voluntary sector and independent providers, to shape services to provide integrated single
access, support people to live at home and improve life chances of children. The development of
Community capacity and neighbourhood management will provide stronger, more stable communities in
which to support a range of preventive services, helping vulnerable people to live inclusively.
Salford‘s Health Improvement for Tomorrow (SHIFT) and Local Investment Finance Trust (LIFT)
programmes will revolutionise primary health and social care in the City, building 4 new centres for health
and social care and bringing forward very substantial investment levels.
Capital resources will be used to support the overall themes of:





Greater joint working with Health and other partner agencies
Modernisation of assets to provide “fit for purpose” buildings meeting people’s needs and Disability
Discrimination regulations
Modern accommodation for the effective and efficient delivery of services to people
ICT infrastructure to develop alternative media for communication and information handling
Providing modern community centres that will enable social, educational and leisure activities, which
will promote active and vibrant communities.
Specific capital schemes will include:






Investment in Children’s disability service to provide better foster care accommodation and respite
care provision
Investment in Mental Health services to create integrated single access teams across health and
social care sector. Including investment to implement the Social Inclusion Unit recommendations
Investment in the ICT infrastructure to extend electronic delivery of service through email, internet
and intranet, plus further development of the CareFirst client information system and improvement
in the communications network
Development of document management and E-procurement to support ESCR and E-government
targets for modern service delivery and interaction with service users and providers
Investment in services to modernise the physical environment of day care opportunities to promote
independence by supporting people to live at home
Development of Community Centres with New Opportunities Funding, to provide community assets
to support and promote strong communities
SECTION 3 – OTHER FINANCIAL IMPLICATIONS
Revenue Implications
The Council has habitually considered the revenue implications of capital projects before approving them for
inclusion in the capital programme. The revenue budget planning incorporates any project with revenue
implications. Provision is made annually in the revenue budget for the additional maintenance costs of
capital projects emerging from their contract maintenance period. The prudential code for capital finance has
now codified this practice as a requirement in determining the affordability of capital plans and borrowing
limits. There are currently no capital projects in the 5-year plan that have major revenue implications for the
future.
The Council’s first PFI scheme for 2 new secondary special high schools has been completed in 2004/05
and the unitary charge from the provider and the associated Revenue Support Grant have been accounted
for in the revenue budget.
The budgetary plans for 2005/06 to 2007/08 also envisage a major use of unsupported borrowing on an
invest to save basis for investment in the improvement of roads and footpaths, which should reduce the
revenue provision for tripping claims in particular.
9
The capital programme continues to support the revenue budget by funding the capitalisation of certain
revenue expenditure with the support of Section 40(6) directions from the Secretary of State, utilising capital
receipts. The budgetary plans for 2004/05 begin to unwind the capitalisation of revenue expenditure and the
elimination of Section 40(6) support and the provisional budgetary plans for 2005/06 envisage a complete
unwinding of capitalisation.
Approach to PPP/PFI
The Council is committed to PPP/PFI as a means of achieving desired outcomes where this is the most
viable option, as can be evidenced by the following activity: 










One PFI Special school is now operational, the other two will be operational from September 2004
Indicative pre-OBC approval from the DfES to a £48m PFI scheme for 3 new high schools
Indicative pre-OBC approval from the LCD to a £22m PFI scheme for new magistrates courts in Bolton
and Salford
Financial close with the NHS, Salford PCT and other local authorities for the provision of new joint
health/local authority facilities, 6 of which will be located in Salford as part of the first wave of
development by the end of 2005.
A limited partnership has been entered into with a funder and developer for regeneration work in Higher
Broughton
Outline heads of term have been agreed for a partnership for area wide regeneration of Lower
Broughton and Ordsall
Nearing contractual close on the transfer of elderly persons homes to a private care provider
The establishment of a not-for-profit trust for the management of the City’s leisure centres
Support to the Greater Manchester Waste Disposal Authority in procuring a new long term waste
disposal contract via PFI by April 2006
Selection of preferred strategic and operational partner for the provision of the Council’s technical and
associated support services (architectural, engineering and property) are at an advanced stage in the
procurement process.
The City Councils corporate support services such as finance, legal, administration, IT, customer
services, HR) services are subject to service reviews to ascertain the most appropriate partnership
approaches which would produce the greatest benefit to the City Council.
SECTION 4 – CROSS CUTTING ACTIVITY
Disposal Strategy
The disposal strategy of the Council has been heavily influenced by the funding needs of annual capital
programmes, the extent of buoyancy in the property market locally, the need to stimulate private sector
investment in certain parts of the City and the supply of assets for disposal. The Council seeks to balance
these sometimes conflicting requirements so as to manage the tensions between the need to generate
capital receipts and maximise the amount from each disposal by bringing assets to market at the most
suitable time.
Between 2000 and 2002 the Council had an over-riding need to raise exceptional amounts through the
disposal of assets in order to support the revenue budget through difficult times, by funding revenue that had
to be capitalised. Last year these demands eased substantially and this year’s requirement for capital
generated from the sale of assets together with projections going forward, is much more modest and has
allowed more emphasis to be placed on the timing of disposals and stimulating investment, particularly in
the Central Salford area. The City Council will increasingly use its assets to stimulate private sector interest
and investment in partnership schemes rather than to secure capital receipts via disposal.
Best Value
Capital investment is an integral consideration in best value reviews. Through the Authority’s performance
management system a systematic approach ensures that we monitor our performance against our own
short and medium term targets and compare our performance with the best. Detailed consideration is given
to the actions necessary to improve our performance. Best value reviews concentrate on the experience
and needs of the customer and inform investment decisions. Performance monitoring systems incorporate
service results as comparative data and provide benchmarking information, to ascertain where service
improvements are needed and, where appropriate, used to inform cross cutting action.
Best Value results are communicated extensively to stakeholders through the Best Value Performance Plan
summary document, which is distributed to all households, containing performance feedback from previous
years targets and targets for future years.
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SECTION 5 - CONSULTATION
Partners IN Salford has been consulted on the development of the Capital Strategy with key partners such
as the Salford Primary Care Trust, Police, Job Centre Plus, Manchester Enterprises and the faith community
and voluntary sectors endorsing the strategy and ensuring links with the Community Plan. The City’s
Community Strategy and Community Committee structures have also been utilised as a consultation
mechanism on the Community Plan and Neighbourhood Renewal Strategies from which this strategy flows.
The review of the Community Plan which will take place during 2004/05 will represent a significant
opportunity for further consultation.
Local transport programmes, structural and management decisions in the education sector, housing
developments and service provision with Social Services are all subject to separate consultation and
approval mechanisms within local communities, underpinned by the authority’s approach to customer care,
quality services and consultation. Consultation will be taken in accordance with the Council’s constitution
and will be linked with the revenue budget process.
Regeneration programmes such as the SRB 5 area in Seedley and Langworthy and the NDC area in
Charlestown/Kersal have strong and robust mechanisms for active community involvement in decisionmaking and developing programmes. The Participatory Appraisal approach is now widely used across the
City to actively involve local people in the decisions affecting their neighbourhoods and is widely regarded
by Government Office as a significant tool for achieving this.
SECTION 6 - LINKS WITH OTHER PARTNERS, PLANS AND PROGRAMMES
The NWDA’s re-launched Regional Economic Strategy and the emerging Greater Manchester Sub-Regional
Strategic Framework provides a key context for the City’s activities and programmes at regional and subregional level. Through Partners IN Salford the Community Plan formalises partnership arrangements
across the City ensuring consistency across the range of other plans that the Council can influence,
including the Health Improvement Programme, LA 21 strategy, Education Development Plan, Lifelong
Learning Framework, Economic Development Strategy, Children & Young People’s Strategy and Crime and
Disorder Strategy.
Salford has an extremely successful history of working with neighbouring authorities. Close working
relationships were developed with Bolton (SRB 3) and Manchester (SRB2). The City Pride Forum brings
together the five authorities of Salford, Tameside, Manchester, Trafford and Stockport to promote a subregional approach to regeneration, resource procurement and investment. Well-developed links exist on the
transportation and environmental quality themes with the Greater Manchester Transport Plan and Air Quality
Strategies. The HMRF Pathfinder, the Objective 2 Economic Development Zone and the Knowledge Capital
initiative and work to develop the River Irwell and other regional centre locations are current examples of
work under development jointly with Manchester City Council.
Partnerships with the private sector also play a crucial role in our approach to capital investment. In
Education the Directorate is currently working with the DfES, Partnerships for Schools and potential private
sector partners to take forward the delivery of the “Building Schools for the Future” capital investment
strategy. This could include the setting up of a LEP.
Innovative solutions have been developed with financial institutions to ensure communities are kept
together. The first Homeswap schemes have been completed in Seedley and Langworthy and a customised
model is being developed in Broughton. New and exciting proposals for terraced properties in Seedley and
Langworthy are under development between the Council, English Partnerships, Urban Splash and may
promote an alternative to clearance in appropriate circumstances. Housing renewal areas are being drawn
up in conjunction with private sectors partners such as Bovis Lendlease in Broughton, to tackle
neighbourhood renewal in a more comprehensive and innovative way. The Chapel Street Initiative has
secured significant sums from the private sector to regenerate the area adjacent to the regional centre. The
proposed Central Salford Urban Regeneration Company will build upon this and draw in substantial
additional private investment and ensure work on current programmes is co-ordinated to deliver added
value.
Partnership working has been developed so that we enjoy an even stronger engagement than
previously, both strategically and locally, and on the joint delivery of services. Developments include:  Closer working with partners through the introduction of forums where the Chief Executive
meets with partner CEs (e.g. vice chancellor of the university, CE of PCT, chief of police,
government office, chair of LSP) on a regular basis, to discuss common issues;
 Development of a multi-agency partnership approach at the local level, including the council,
PCT and police, through our neighbourhood management proposals;
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
Reducing crime in our communities, in which our community sector teams and CDRP have
been key factors;
Joint commissioning in the areas of health and social care with the PCT. We now have a
number of joint appointments, notably a joint director of public health who is now a member of
our Directors Management Team. This partnership working is serving to develop and increase
capacity both for the council and for our partners.
SECTION 7 - PERFORMANCE MEASUREMENT AND INNOVATION
The City’s Best Value Performance Plan sets out key performance indicators across service areas with
results scrutinised closely by the 5 Scrutiny Committees and annually by the Audit Commission.
Achievements and results are communicated across key partners as part of a corporate information
strategy but also through individual service and regeneration programmes. The authority is currently
looking to develop benchmarking activity in conjunction with neighbouring authorities to analyse more
fully the impact of the capital programmes on the desired outcomes for the City. Our Strategic and Best
Value Performance Plan for 2004/05 sets out a series of aspirational targets for our services over the
next three years. Central to this is the Think Customer pilot that is providing a coherent, multi agency
approach to customer focused service delivery.
The City's Best Value Review of its office support accommodation has established a series of PI's including
running costs and occupancy levels. Performance targets have been set and are benchmarked through the
Sheffield Hallam University Benchmarking Group. This is resulting in improved space utilisation.
The City Council has recently been awarded Beacon Status for Benefits Administration and Supporting
People.
Comprehensive Performance Assessment (CPA) provides an additional means of measuring how well
services are provided, and how well the Council is run, in comparison to other Local Authorities. Service
areas such as benefits and education were praised, but the overall categorisation result was disappointing.
Since its CPA designation is “weak,” the Council has built upon its strengths and tackled its weaknesses via
improvement planning. These planning proposals will look at two sections: service and cross-cutting issues,
and corporate improvements to build capacity. Salford is participating in the pilot scheme for the revised
CPA arrangements and will be inspected in July 2004.
As part of our commitment to improve, the Council has signed a Local Public Service Agreement, to meet 12
challenging targets across various services. The City has been awarded £1 M to initiate the improvements.
If achieved by March 2005, a further £6M will be made available for additional service improvement. We are
at the start of developing our second generation LPSA which will be more partnership based and negotiated
with Government for implementation in April 2005.
The Council has taken note of the partnering approach to procuring development recommended by Sir
John Egan and utilises that approach in a number of ways. We take a long term view of partnering
arrangements and current examples include:

Development Services Directorate will decide in 2004/5 on a joint venture partner to work alongside
in an innovative joint venture company, for all their services which will increase capacity to meet our
ambitions and facilitate massive investment in the City’s highway infrastructure.

Under the Rethinking Construction Implementation Strategy expressions of interest are being
sought to work with the Council to provide the planning, design, construction and maintenance
services of the Development Services Directorate over the next 5-7 years. In the interim the Council
has been Rethinking Construction in a number of ways including applying innovative approaches to
procurement on the Eccles Town Centre bypass and Stage 3 of the Salford Inner Relief route which
will be developed further for the procurement of Cadishead Way Stage 2, the application of the
principles of Rethinking Construction to a £3m Housing Environmental Improvement scheme at
Spike Island and a partnership between the City Council’s Landscape Design Group and a
Landscape Contractor to bid for, design and construct 3 gardens at the Royal Horticultural Society’s
Tatton Park Show.
New Technology Impact
The Council recognises the tremendous capacity improvements that can be achieved via the
contribution of ICT in developing modern business structures and processes. We have been a national
pathfinder for E-Government for the past three years, and one of only 6 national Customer Relationship
Management (CRM) programme partners, and have achieved over 75% e-enablement of council
transactions to date through a range of developments. We have implemented (and continue to
implement) a range of highly significant and successful initiatives including: -
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
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
The development of an award winning customer contact centre, and an award winning web site
www.salford.gov.uk/council/corporate/e-government/contact_centre
www.salford.gov.uk
ECDL (advanced) approved test centre
Learn Direct – we are one of a handful of hubs nationally and are due to be upgraded to full
provider status imminently
Further improvements to customer access including customer relationship management system,
and e-democracy applications
Improvements to back office systems e.g. SAP, document management, content management
Continuing investment in core ICT infrastructure to enable improved service provision e.g.
broadband rollout, e-mail, Internet and intranet access, e-forms
Improvements in community ICT capacity through the provision of ICT in local facilities e.g.
libraries, community centres, city learning centres and mobile facilities
Delivering our customer first strategy – The Think Customer pilot is aimed principally at
providing the first point of contact to citizens, around life events (including partners), using
telephone, face to face, internet and paper channels, and from there reengineering back office
services. The pilot has taken the innovative approach of concentrating efforts into a 100 day
period up to the 18th June 2004, to evaluate the potential benefits, risks and costs of a
collaborative service delivery model, involving both the council and partners.
SECTION 8 - MANAGEMENT AND EVALUATION
The Cabinet considers the Capital Investment Strategy and Asset Management Plan and recommends their
adoption to the Council. The annual capital programme is considered within the context of the Strategy and
also approved by Cabinet and Council. A spending profile is identified for each approved capital scheme
and officers monitor actual cash flow against the profile at monthly intervals during the year. Also, key
milestones are identified for each major capital receipt above £100k and monitored by the Corporate
Property Officer and the Head of Finance.
The Council has a well structured approach to the monitoring of the capital programme. Project managers
and accountants are responsible for the day-to-day management of the programme. Regular progress
meetings at this officer level feed into a corporate monthly report on the progress of capital expenditure
against the programme to a Budget Scrutiny Committee. Information on asset disposal is also fed into the
committee reports via regular progress meetings between Corporate Property Officers and the Head of
Finance.
The Budget Scrutiny Committee scrutinises progress with the programme and individual schemes, and
makes any recommendations thereon to Cabinet and Council. This process enables closer monitoring of
capital cash flow to ensure that the available resources are not over-committed. Service directors are
responsible for monitoring and reviewing progress on capital schemes in terms of outputs and outcomes,
reporting performance to their Lead Members. The Chief Executive performs a co-ordinating role for crosscutting and regeneration schemes.
Approach to Prioritisation/Core Criteria/Option Appraisal
The Council currently prioritises its capital investment according to whether it: 




Meets the Government’s annual capital guideline for each major service
Maximises available external funding and stimulates other investment
Meets national, regional and local priorities
Targets its key priority regeneration areas, i.e. Central Salford, Seedley/Langworthy, Higher
Broughton and Kersal/Charlestown
Supports the revenue budget
The Council has over recent years sought to develop a more objective means of assessing its priorities for
capital investment which embraces a wider range of assessment criteria, such as the extent to which they
satisfy health and safety requirements, contribute towards enhancing the life of an asset, improve the
environment, stimulate the local economy, reduce risk, engage partners and consult with the public. As part
of the prioritisation process it has been agreed that weighting is placed upon the assessment criteria in
terms of high, medium and low priorities, these consist of the following:

High Priority

Medium Priority

Low Priority
Mandatory requirement, maximises external resources or
whereby specific assets will be improved/used
Strategic impact of the scheme and contribution towards the key themes
of the Community Plan
Other relevant information required to assess prioritisation e.g. revenue
savings
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A cross-directorate group comprising officer representatives of the Resource Planning Group and the Asset
Management Group tested a prioritisation model for the 2003/04 capital programme, which proved to
support the Council’s key criteria for capital investment, and was retained for determining the 2004/05
capital programme.
All Directorates have been invited to submit proposals for the capital programme. Corporate Services will
carry out basic financial checks, all proposals which satisfy these checks will be submitted to an appraisal
panel to be scored against set eligibility criteria. The appraisal panel will consist of officers from a number of
directorates combining financial and project appraisal expertise.
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ASSET MANAGEMENT PLAN
1.
ORGANISATIONAL ARRANGEMENTS FOR CORPORATE ASSET MANAGEMENT
A.
INTRODUCTION
The occupation of property is fundamental to the delivery of the Council’s services. To ensure
that the Council’s property is used efficiently and effectively organisational arrangements have
been put in place to facilitate the corporate management of assets.
Fundamental to corporate asset management is the operation of the Council’s Resource
Planning Group and Strategic Property Management Unit, the activities of the Corporate
Property Officer and the role and function of the Lead Member for Property.
This years Asset Management Plan updates the 2003/04 document.
B.
THE RESOURCE PLANNING GROUP (RPG)
The RPG was established in June 2003 through the amalgamation of the former Asset
Management Group and Budget Planning Group.
The terms of reference and role of the RPG includes the strategic management of the Council’s
property portfolio and development of the Asset Management Plan and Capital Strategy.
Senior representatives, mainly at assistant director level from all directorates, attend the group
with the lead for property matters being taken by the Corporate Property Officer (CPO).
The RPG meets regularly usually on a 4 weekly cycle with additional meetings to consider
specific matters when necessary
The Group makes recommendations regarding property to the Lead Member for Property,
Directors Team and Cabinet for approval.
With the formation of New Prospect Housing Ltd an arms length company to manage Housing
Revenue Account assets, the Housing Services Directorate has created an asset management
post to coordinate the Council’s asset management planning and processes with the company
and act as the key link with the corporate Resource Planning Group.
C.
STRATEGIC PROPERTY MANAGEMENT UNIT (SPMU)
The SPMU was established in 2000 as a result of the Council’s Best Value Review of office
accommodation and strategic property management. The SPMU is a corporate resource. It acts
as a catalyst to raise and promote consideration of corporate property issues and holds and
maintains property data and performance information.
The Unit is responsible for raising the profile of property and property performance and for
developing and improving strategic management activities including: 


D.
Property Data
Property Performance
Property Strategy
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


Accommodation Strategy
Procurement and Disposal
Planned Maintenance
Financial Planning for property
CORPORATE PROPERTY OFFICER (CPO)
The Council has a designated CPO responsible for the development of corporate asset
management. Terms of reference for the CPO follow ODPM prevailing guidance.
The terms of reference and roles of the RPG, SPMU and CPO have been endorsed by
directorates and approved by Cabinet.
These terms of reference and roles are published on the Council’s intranet site and updated as
appropriate. The CPO is involved in the preparation of the Asset Management Plan and Capital
Strategy including the setting of capital and revenue targets for property in conjunction with the
Head of Finance and he is also a member of the Resource Planning Group. As Head of the
Property Division he has an overview of all property matters and is the lead officer for property
related public/private sector joint company partnership proposals. The reporting procedure of
the RPG, SPMU and CPO through to Directors Team and Members is shown in Appendix 1
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E.
LEAD MEMBER FOR PROPERTY
The Council has a Lead Member for property. His cross cutting role and responsibilities have
been defined and agreed by Cabinet. In addition to the formal reporting processes, regular
briefings take place between the CPO and Lead Member to ensure that he is aware of and
briefed on important property matters. The Lead Member can similarly raise issues with the
CPO.
The Lead Member has monthly meetings with the CPO and key officers from the property
division and SPMU to receive reports from Resource Planning Group and consider other
property matters.
F.
SUPPORTING CORPORATE AND SERVICE PLAN OBJECTIVES
CORPORATE OBJECTIVES
Property owned or occupied by the Council must be used and managed efficiently, effectively
and economically to support the council in achieving its Mission, which is: “To create the best possible quality of life for the people of Salford”
To assist the Council in achieving its Mission the Council has made seven pledges to all
Salford’s local communities. These Pledges, which were adopted in 2004, are the Council’s
priorities for both statutory and local service delivery and are set out below.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Pledge
Improving health in Salford
We will improve the health, wellbeing and social care of the
people in Salford
Reducing crime in Salford
We will reduce crime and disorder
and improve community safety
Encouraging learning, leisure
and creativity in Salford
We will raise education and skill
levels and further enhance
cultural and leisure opportunities
Investing in young people in
Salford
We will focus on services,
activities and opportunities to
support children and young
people in achieving their full
potential
Promoting inclusion in Salford
We will tackle poverty and social
inequalities and increase the
involvement of local communities
in shaping the future of the city
Creating prosperity in Salford
We will ensure an economically
prosperous city with good jobs
and a thriving economy
Enhancing life in Salford
We will ensure that Salford is a
city that’s good to live in with a
quality environment and decent,
affordable homes which meet the
needs of a local people
Links to Asset Management
Start work, in partnership with Salford PCT and the
private sector, on the six new primary care centres in
Swinton, Eccles, Walkden, Pendleton, Charlestown and
Lower Kersal.
Investment in modernising buildings providing day care,
rehabilitative and respite care will continue.
Building and improvement schemes to reflect secure by
design criteria. Highway works to improve highway
safety. Promoting CCTV proposals
Create schools of sufficient size, with stable viable pupil
intake and financial stability and sustainability and
improve building condition which will provide a suitable
stimulating and attractive learning environment to
support the delivery of the curriculum and raise
education standards. Improve the quality of recreation
facilities.
Appropriate community, youth, teaching, and residential
accommodation for young people in care to be
provided.
Where improving access to services requires building
improvement these are identified and undertaken. e.g.
DDA compliance for public access buildings.
The policy of promoting social inclusion for people with
learning difficulties and physical disabilities will continue
by increasing the use of community based services and
activities.
Utilise the Council’s property as appropriate particularly
within Central Salford Regeneration area, Higher
Broughton & Lower Broughton, Seedley and
Langworthy, Lower Kersal and Charlestown.
Improve the built environment and in particular the
city’s highway and transport network
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These Pledges are the strategic drivers for service delivery and service planning across the
Council in its support of and contribution to Salford’s Community Plan Objectives and will
assist the council to achieve its vision “To create a City where people choose to live and
work”
In order to guide its management, use and occupation of property the council has taken the
themes arising from its Mission and Pledges, which are reflected in the Strategic and Best
Value Performance Plan, to establish a set of six property aims and a series of specific
property objectives supporting each aim.
These Aims and Objectives are incorporated into the Council’s’ Property Strategy that has
been approved by the RPG, Directors Team and Cabinet. PI’S to measure performance and
progress in achieving these objectives have also been established. The Aims Objectives
and PI’s are set out in Appendix 2.
G.
SERVICE PROPERTY STRATEGIES
To ensure that property supports individual service plan objectives the SPMU has worked with
service directorates to identify key issues affecting property and their future property
requirements to produce service property strategies (SPS’s) These documents set out the vision
for a particular service, its property and performance in terms of running costs, condition and
backlog maintenance and identifies the changes to the portfolio that are planned.
The service property strategies form a bridge between service plans and the Corporate Asset
Management Plan. The corporate AMP identifies the key issues affecting the council in Section
6 and sets outs both Directorate and corporate property issues in the table at Appendix 3.
This table has been developed from the key property issues table in the 2002/03 AMP. Matters
that have been dealt with since last year have been removed and new issues added.
The table shows the current position together with future action and time scales. This is a
shorthand summary of the situation which acts as a quick reference point, which is reported to
Directors, and Members in order that progress in delivery can be monitored and any problems
or areas where additional action is required can be identified.
Housing, Education and Transport requirements are dealt with in detail in their respective Plans
and Programmes.
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H.
CPA AND BEST VALUE
CPA improvement planning along with Best Value review programmes, are key elements of the
Governments agenda to modernise local government and drive improvement. As part of
Salford’s Best Value review process property and asset management issues are identified and
addressed in each Best Value review. CPA improvement planning generates improvement
activities additional to the Best Value review programme. The Council’s Strategic Property
Management Unit is working with directorates to ensure appropriate consideration is given to
property issues for these improvement activities.
The most significant review in terms of impact on property to date has been the best value
review of Property and Asset Management. This review was undertaken in two phases. Phase
1 was a review of Office Support Accommodation and Strategic Property Management. On
inspection in May 2001, the Inspectors found a ‘fair’ service, which was ‘probably’ going to
improve.
In March 2002 the Phase II review of the remaining property portfolio and property service was
completed, though this is not being inspected at the present time.
The completion of this review has made a positive contribution to asset management planning
and has been particularly useful in assessing and driving improvement in the performance of the
Council’s property see section 4B
Key changes resulting from the review have been:  The establishment of an office accommodation strategy
 The introduction of office space standards
 The centralisation of Facilities Management Services
 The introduction of local property performance indicators
 Measures to improve the cost effectiveness of the property service
 Measures to improve building and services user satisfaction
 Identification of property held for investment or social purposes
The property implications of other Best Value reviews and CPA improvement activity is shown
at Appendix 7
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I.
FINANCIAL REQUIREMENTS OF THE AUTHORITY
The Council’s capital and revenue requirements are supported by income generated from the
investment estate and capital receipts from the sale of assets.
The CPO and Head of Finance as part of the budget planning process set targets for revenue
and capital generation.
In 2004/05 the Council’s property portfolio will generate income of approximately £2.94M to
support the revenue budget. (This compares with £2.97m in 03/04) This income is made up
of; industrial estates and other commercial properties totalling £1.934M, housing shops and
properties £666K, markets £210K and other properties and land in the city of £133K.
The capital receipts target for 2004/05 is £11.3m of useable capital receipts
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2.
CONSULTATION
Consultation is an important element in the asset management planning process. The authorities
consultation process includes: 
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The operation of the RPG and input to the Group from directorate representatives
One to one interviews with individual RPG representatives and others to identify key property
issues
High level surveys to establish current perceptions and needs
Input provided by the SPMU from their cross directorate activities
Staff consultation on perception of need and property proposals
Consultation by Directorates with building users
The Community Plan process
The result of consultation within individual Best Value reviews
Consultation process linked to Education Asset Management Plan and Schools Organisational
Plan
The results of these activities have informed the formation of the key issues in Section 6 and
Appendix 3
A.
PARTNERSHIP WORKING
Partners IN Salford, the City’s Local Strategic Partnership (LSP) established in 1994, brings together
key agencies across the public, private, community and voluntary sectors to promote and develop
close collaborative working and has been responsible for the development of the Community Plan and
Neighbourhood Renewal Strategy. The Partnership has been consulted on the Capital Strategy.
Through the period of producing the Community Plan the Salford Partnership has achieved a great
deal. Collaborative working across many key partners has improved and for the first time integrates the
City’s Community Strategy so that local people can see clearly where their priorities fit into the wider
picture.
The Community Plan Incorporates more than 50 targets for improving the quality of life over the next
five years. These are being delivered within a framework of 7 strategic delivery partnerships which
champion the Community Plans themes.
Over the last year these targets have been monitored, reviewed and progress reported to the local
strategic partnership. A major review of the whole Community Plan will be undertaken during the
coming year with the objective of identifying a small number of key strategic targets which are
dependent upon effective partnership working.
In October 2002 the Salford Partnership’s Neighbourhood Renewal Strategy (NRS) was published
which provides extensive evidence of local deprivation. It incorporates the floor targets set in the
Governments New Commitment to Regeneration - National Strategy Action Plan. The NRS is
providing the future framework for renewal activity across partnership agencies. It is a dynamic
strategy and will be informed by the unique early warning system, which is a diverse and regularly
maintained database which will alert the partnership to the possibility of neighbourhood decline
before it has progressed too far.
The Partnership seeks to ensure that all its targets, both within the context of the Community Plan,
and NRS, are consistent with other agencies’ targets, including the City Council’s Best Value
Performance Plan and Public Service Agreements.
During 2003/04 the LSP prioritised and developed partnership based delivery in three over-arching
priority areas. These are:



Education and basic skills uplift
Improving the image of Salford
Improving service delivery and implementing Neighbourhood Management.
The need to improve the quality and co-ordination of community involvement activities across
partnership agencies. Funding has been secured to develop a project to progress this and a Good
Practice Project has been established. A Best Value review of Community Engagement has also been
conducted.
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Innovative methods of working with the private sector are being pursued across the City and are having
a positive impact on property provision. The creation of an Arms Length Company has taken over the
day to day running of housing properties and will bring them up to a decent standard following the
provisional resource allocation of £53.5m to manage and maintain local authority housing; Social
Services have secured the transfer of Elderly Persons Homes to a Trust designed to secure improved
services and facilities by achieving investment in assets; Education will have three special high schools
fully operational during 2004 which have been delivered via PFI. Approval has also been given by the
DfES for the provision of replacement schools for three mainstream high schools through PFI.
In addition Education is seeking to be part of the second wave of local authority's to replace our
remaining secondary schools as part of the BSF capital investment, which could include the setting up
of a LEP involving the private sector.
Partnership working within communities is the most important aspect of the City's Community Strategy
with the establishment of Community Committees since 1992 enabling local people to participate in the
decisions directly affecting them. Community Action Plans outlining local priorities, developed by the
community, feed directly into the Community Plan. Regeneration schemes such as the SRB 5
programme in Seedley and Langworthy and the New Deal for Communities programme in
Charlestown/Kersal promote local partnership working within communities, with local people directly
involved in the management structures established within them. Salford, along with Manchester, has
received Housing Market Renewal Funds for 2003/4-2005/06, which will bring in £44m into Central
Salford.
The Central Salford initiative is progressing with negotiations underway to form a new model Urban
Regeneration Company through founding partners the City Council, the North West Development
Agency and English Partnerships. It is anticipated that this will bring in significant private and public
resources to assist the City’s successful regeneration, complementing the £44m that Housing Market
Renewal funding is bringing in up to 2005/06 initially.
Partners IN Salford fully intends to remain action focussed and it has an agreed work programme to
deliver. The Partnership has identified a number of clear opportunities to strengthen its role and
performance including:


The delivery of the Neighbourhood Renewal Strategy.
The major investment in health services (and in the associated physical, economic and social
regeneration) represented by the SHIFT Programme (Salford Health Improvement for
Tomorrow - £130m investment over 10 years in Salford’s health services)
In addition the Community Plan will be reviewed during 2004/05 and the Implementation
Framework of the NRS strengthened which will offer a major opportunity for greater clarity of
partners roles as well as supporting greater efficiency and effectiveness.
Partnership working has also been developed so that we enjoy an even stronger engagement than
previously, both strategically and locally, and on the joint delivery of services. Developments
include: 



B.
Closer working with partners through the introduction of forums where the Chief Executive
meets with partner CEs (e.g. vice chancellor of the university, CE of PCT, chief of police,
government office, chair of LSP) on a regular basis, to discuss common issues;
Development of a multi-agency partnership approach at the local level, including the council,
PCT and police, through our neighbourhood management proposals;
Reducing crime in our communities, in which our community sector teams and the Crime and
Disorder Partnership (CDP) have been key factors;
Joint commissioning in the areas of health and social care with the PCT. We now have a
number of joint appointments, notably a joint director of public health who is now a member of
the City Council’s Directors Management Team. This partnership working is serving to develop
and increase capacity both for the council and for our partners.
USER SATISFACTION
The need to develop building occupier and user satisfaction surveys was initially identified in the
2001/02 AMP.
Extensive user satisfaction surveys were undertaken as part of the Best Value Review of Property and
Asset Management. The results identified repair and maintenance issues in certain buildings being a
particular concern..
21
Within the Community & Social Services Directorate, consultation with users, carers, and staff is an
integral element of service delivery and review. The consultation process includes reference to the
suitability of the building to deliver modern services compliant with regulatory requirements. In settings
where personal care services are delivered the process also includes the ability to maintain the privacy
and dignity of the service user.
User satisfaction is also being used in area based property reviews as one of a set of measures used
to assess building performance, as part of the corporate asset management planning.
C.
COMMUNITY CONSULTATION
The City's Community Plan, which was approved in 2001, is based on the priorities identified within 9
Community Based Action Plans across the City, developed and endorsed by local communities.
Consultation with Community Committees on the Community Plan is currently underway. A fuller
explanation and examples of the types of community consultation undertaken are included in the
Capital Strategy at Section 5.
The Community Plan and Community Action Plans, Directorate’s Service Plans and the operation of
specific initiatives Task Groups are recognised as key drivers, which shape asset needs. These are fed
into the asset management process and key property implications are reflected in the AMP. This
process is shown in the diagram below:
PARTNERS PLANS
Businesses and Other
Public Bodies
Specific Initiative
Task Groups
Property
Implications
Capital Strategy
Thematic Priorities
for investment
COMMUNITY
PLAN
9 Local Action
Plans
High Level
Property
Implications
Service Delivery
Plans
Property
Implications
Property
Implications
A
M
P
The implications for property and the changes required identified as a result of these consultation
processes is shown in the table of key property issues in Appendix 3.
22
3.
DATA MANAGEMENT
The SPMU maintains a property database that holds core and intermediate data on all the Council’s property,
which brings information together from a range of sources. The portfolio is clearly defined and has been
categorised into the CIPFA categories plus surplus property. The portfolio and the number of individual assets and
their capital value are shown below:
Operational
Cipfa Category
Other Land & Bldgs
Community Assets
Non Operational
Council Dwellings
Non Operational (General)
Surplus Property
Function
Administration Offices
Car Parks
Care in the Community
Caretakers Houses
Cemeteries
Civic Youth Centres
Community Centres
Day Care Facilities
Nursery (Early Years Centres)
Land
Landscaping
Libraries
Misc Civic Accommodation
Museums
Other ED Land
Park Building
Public Conveniences
Pupil Referral Units (PRU)
Recreational Facilities
Residential Accommodation
Special school bldg assets
Primary school bldg assets
Secondary school bldg assets
SUB TOTAL
Cemeteries
Land
Landscaping
Parks
Recreational Facility
Walkway
SUB TOTAL
No of Assets1/4/04 Total Value 1/4/04
68
19446204
47
7422511
9
60017
20
725020
7
672952
10
2608151
17
1992655
16
7806503
4
1595250
65
293360
12
12
13
6189502
5
916002
2
3496000
42
2037682
35
2621542
3
138004
2
882500
21
1455117
23
10824005
(5 Schools)
7
8539902
(42 Schools) 104
65626327
(11 Schools)
55
60981777
587
£206,330,995
7
7
29
29
41
42
152
195151
42
62421
32
32
303
£257,682
963,041,329
(Beacon
27,636
Value)
Car Park
11
2255803
Community Centre
7
55013
Ind/Com Bldg
40
5946665
Ind/Com Land
244
6636770
Ind Estates
19
6319968
Market
2
4
Recreational Facility
9
26508
Shops
59
3839365
SUB TOTAL
391
£25,080,096
Administrative Offices
3
512503
Car Park
1
25000
Cemeteries (Bldgs)
3
41004
Houses
28
652778
Museum
1
250001
Park Bldg
2
303000
Public convenience
2
4
Residential Accommodation
1
100001
Shops
1
350001
Underused/Vacant Land
215
12671646
Underused/Vacant Property
177
6619347
SUB TOTAL
434
£21,525,285
TOTALS (EXCL Council Hsg)
1715
£253,194,058
23
Changes in Portfolio
Through a process performance assessment and improved alignment of property with service delivery needs, the
Council has been able to identify assets that are surplus to its requirements. Implementation of the Surplus
Property Policy has enabled the Council to significantly reduce the amount of property within its ownership.
Reducing the amount of property held has reduced the call on the revenue budget to support building running costs
so allowing money that would otherwise have been spent on this property to be redirected to support service
delivery. In 03/04 the disposal of surplus assets (excluding Council houses) generated £9.9m in usable capital
receipts for reuse by the Council supporting the Capital Programme.
A summary of the changes in the portfolio from April 2003 to April 2004 can be seen in the table below;
CIPFA CAT
Operational
Other Land & Buildings
Community
Non-Operational
General
Surplus
TOTALS
No of
Assets
Building Area (GIA)
Sq.M
Less 8
assets
Plus 30217 Sq.m
Less 2
assets
No change Sq.m
Less 6
assets
Less 6
assets
Plus 2835 Sq.m
Less 22
assets
Plus 10566 Sq.m
Less 22485 Sq.m
Comments
A recalculation of school building
areas has increased the overall
Sq.m of operational buildings. Some
buildings identified as surplus to
requirements through service
reviews
2 land assets removed
Some land assets disposed and new
buildings included
Larger surplus school building
disposed and new smaller surplus
assets added
Increased area for school buildings
plus some land assets removed and
some schools extended
Through formal and informal stakeholder consultation we know that the remodelled portfolio is generally better
suited to support modern service delivery approaches and has increased staff satisfaction levels without there
being any detrimental effect on access to services.
A.
CORE DATA
The database holds all core data, including a CIPFA property categorisation and a description of
the function of the property.
B.
TRANSIENT DATA
The SPMU is very aware that in addition to the core data, only that data which is relevant and of
use in supporting property PI’s, which can be used to improve performance, should be collected.
Data is collected to support the national property PI’s and the Council’s local property PI’s that
have been derived from the corporate aims and objectives for property.
This transient data, e.g. running costs, occupancy levels and condition is collected and held on the
property database. The Council’s financial information is held on a SAP system. This information is
currently manually extracted and input into the property database. Transient data is reviewed and
updated annually. From the core and transient data, a range of reports can be run on the
performance of the Council’s portfolio.
A key area for improvement is the direct transfer of financial information from the SAP system to
the property database. This will be addressed in the system development for 2004/06.
The validity of the core and transient data is tested. The data held on the database is checked
against and reconciled with primary source data. In updating records, information is received and
checked. The data is checked and verified through its use in implementing Best Value review
outcomes, in supporting PI’s, providing data to benchmarking groups and also through condition
surveys and Target Setting. Whilst there is no formal audit of the data these processes ensure that
the data is firmly based and accurate.
24
C.
CONDITION SURVEYS
All buildings where the Council has a repairing obligation have been categorised into condition
category A to D. The City Council has developed a 5-year rolling programme of surveys, with 20%
of the portfolio being inspected every year. This allows for a detailed analysis of a section of the
portfolio the percentage change of which is then applied to the remaining buildings where the
council have a repairing obligation. This approach has been adopted to facilitate a more
manageable and accurate surveying process.. This data has been used to update and refine the
backlog maintenance figure included in the context sheet and to support pPI 1A & B
The information on condition categories A to D and priority levels one to three has been broken
down into CIPFA categories is shown in Appendix 4 along with the other National PI’s. A summary
detailing the overall condition categories A to D is shown below.
Overall Condition Assessment A-D (Total GIA Sq m and %)
A
B
C
D
The condition of the Education portfolio has been assessed in accordance with DfES guidelines
and the resultant information is contained within the Education AMP.
A Council housing stock survey was commissioned from FPD Savilles in Autumn 2003 and the
final report was issued in February 2004. We now have a detailed database that includes a 17%
sample of all Council housing stock. Analysis of the survey has forecast that expenditure to
improve and maintain the stock over 30-years is some £1.53bn. This equates to £52,593 per
dwelling or £1,765 per dwelling per annum. On the basis of the stock survey FPD Savills estimate
that 69% of the Council’s housing stock failed the Decent Homes Standard (DHS).
The full extent of investment needed to the stock to achieve and maintain the DHS and to keep the
building elements in a good state of repair, over the next ten years, is estimated to be in the region
of £443 million. Initial analysis has indicated that under current Council policies the amount of
investment resources available to the Housing Revenue Account over the next 10 years is some
£161 million. This leaves a funding gap of £282 million, or approximately £9,760 per dwelling.
If the Council were to change its policies in relation to usable RTB receipts and Supported Capital
Expenditure being recycled into housing investment, then funding gap would probably reduce to
some £232 million (£8,050 per dwelling).
D.
GEOGRAPHICAL INFORMATION SYSTEM (GIS)
The Council’s property portfolio is plotted onto a GIS system. This information facilitates area
based property reviews enabling the Council to analyse the distribution of property by category
types across the city.
E.
UPRN AND SYSTEMS DEVELOPMENT
The asset management data is held in an Access database system supported by Excel
spreadsheets. The data held contains a UPRN for each land and property asset. Future
development will require changes to the Council’s systems to comply with the governments
proposals for the NLPG and BS 7666
The Council operates a SAP financial accounting system and it had been expected to introduce a
SAP asset management module. However the SAP asset management module proved to be
unsuitable to meet all property needs and in particular the developing asset management
requirements.
The asset management planning work undertaken over the last three years operating on the
existing database has enabled the requirements of an integrated system to be defined and the
improvements required to be identified.
Alternative systems have been evaluated against the Council’s requirements for introduction in
2004/06. The new system will bring together all property information and its integration with the
SAP financial accounting system. Development Services are currently selecting a Joint Venture
Partner who will assist with investment and system development.
Staff in the SPMU have had appropriate training in the operation of the existing systems.
The introduction of a new system will also require operators and users to receive appropriate
training. These needs will be identified and provided as an integral part of the actions required to
introduce the new system.
25
3. PERFORMANCE MANAGEMENT AND MONITORING
A.
The SPMU continues to raise the profile of property and the importance of property performance
through the operation of the RPG and reports to Directors Team and Members.
Member’s role in driving improvement through the operation of Scrutiny Committee is now well
established in Salford. The responsibility for monitoring performance and delivering improvement in
property related matters rests with the Development Services sub group (the Scrutiny Sub Group) of
Environmental Scrutiny Committee.
The Best Value Review of Property and Asset Management was used to develop a range of local
performance indicators for property and the property service. These measure both building and service
performance and user and client satisfaction see Appendix 2. These performance indicators will also
be used to measure progress in delivering the corporately agreed Aims and Objectives for property. As
part of this process targets are agreed with Scrutiny Sub Group which monitors’ performance through a
quarterly reporting cycle.
Performance in relation to the ODPM national pPI’s is reported annually to the Scrutiny Sub Group and
Directors Team. This performance is shown in Appendix 4. Members have also been advised how
these national pPI’s will be used to improve performance together with the improvements which could
be achieved. See Appendix 5
Implementing the Council’s Office Accommodation Strategy and Improvement Plan has resulted in
improvements in cost and occupancy performance. The improvements measured against the
performance indicators and targets agreed with Scrutiny Committee are reported as part of the
quarterly reporting cycle.
The running costs for various categories of Council property are shown in Appendix 6. Directors are
made aware of their respective services property costs and current office occupancy levels set against
the Council’s corporate targets. Performance is also reported to the RPG, Directors Team and the
Lead Member for Property.
Property performance information including annual running costs, backlog maintenance and condition
category, and DDA issues are included within Service Property Strategies (SPS’s)
It is recognised that Service Directorates could be assisted through the development of further
‘business related ‘ property pPI’s. These will relate business unit transactions (e.g. book lent/enquires
handled) to property costs and space occupied and will be progressed as part of developing Service
Property Strategies. The Council is continuing its work with benchmarking groups – e.g. IPF, AGMA,
Core Cities and Sheffield Hallam University, to assess performance against other organisations. This
benchmarking data is being used to set performance targets and improvements are being achieved.
B.
IMPLEMENTING BEST VALUE OUTCOMES
The Best Value Review of Property and Asset Management has been the most significant Best Value
Review affecting all Directorates. This review defined the Council’s office accommodation strategy and
identified property service improvements. Significant progress has been made in implementing the
office accommodation strategy and the improvement in cost and occupancy performance is shown
below. (Note; data includes ALMO occupied buildings)
ITEM
Number of buildings
occupied
Number of buildings %
change in year
1999-00
Total floor space Sq.m
Total floor space %
change in year
2000-01
2001-02
2002-03
2003-04
50
44
40
35
35
baseline
-12%
-9%
-12.5%
0%
48538
43309
39792
33293
33916
baseline
-10%
-8.1%
-16.3%
+1.87%
26
The reduction in the amount of office support accommodation the Council occupies has resulted in
year on year property running cost savings.
The Phase I review produced a three-year improvement plan that came to an end in September 2003.
At the end of this plan period further rationalisation of the office portfolio was required and a further
two-year plan has been agreed with Scrutiny Sub Group up to September 2005. The Phase II review
produced a 46-point improvement plan approved in March 2002. Of the 46 points 27 have either been
completed or are embedded in annual processes and we are on target for completion of the remaining
points by the end of the 5-year plan.
C.
DIRECTORATE PROPERTY PERFORMANCE
All directorates have been informed of their property performance for 2003/04 financial year, in respect
of the office portfolio they occupy. Where directorates occupy other service property its running costs
have also been reported to them. This process raises directorates’ awareness of property costs and
assists in identifying and targeting the potential areas for improvement.
D.
NATIONAL PERFORMANCE INDICATORS
The Council has collected information required to support the national pPI’s which are reported in
Appendix 4
These performance indicators are being used to improve Salford’s performance and how this can be
achieved is shown in Appendix 5
Salford’s current level of performance in relation to the national PI’s has been compared with the average figures
collated by the IPF Benchmarking Group with a view to identifying and driving areas for improvement. The table
below shows the current position;
National pPI
IPF
Salford’s
Average
Totals
2001/2
2001/2
1A (Condition assessment % of GIA in categories A-D)
(Good) % A
(Satisfactory) % B
(Poor) % C
(Bad) % D
Salford’s
Totals
2002/3
Comments
1B (% of Value in priority 1-3)
(Urgent) 1
(Essential 2yrs) 2
(Desirable3-5yrs)3
4
2 A,B&C (Internal Rate of Return)
(Industrial) A
(Retail) B
(Agricultural)C
3 (Strategic Management Cost)_Note: Day to day management costs collected in previous
years.
Cost per Sq m
4 A,B,C&D (Revenue running costs per sq m)
Repairs A
Energy B
Water C
CO2 D
5 A & B ( % Capital Projects on time/on budget )
(% on Budget) A
(% on Time) B
National PI Summary
With the exception of pPI 1A & B Salford’s general position in relation to the National PI’s is close to the average
figures collated by the IPF benchmarking Group. It is recognised that Salford’s portfolio is in a worse condition than
27
the average of other authorities. The underlying reasons for these results have been considered by undertaking
further detailed work with the AGMA benchmarking group. It has been concluded that this poorer than average
performance could be due to the age of the portfolio, the type of buildings, discrepancies in survey techniques or
historic under funding of maintenance budgets. Whilst the council has also reduced its backlog maintenance
through actively pursuing the disposal/demolition of surplus assets that has allowed the maintenance budget to be
spent on a reduced portfolio, performance remains below the average of other authorities.
28
4. PROGRAMME AND PLAN DEVELOPMENT AND IMPLEMENTATION
Over the past year Salford has continued to improve its asset management planning processes to
improve the utilisation of the Council’s assets in support of efficient and effective service delivery, a key
achievement being the production of Service Property Strategies.
A.
FUTURE ASSET REQUIREMENTS
The asset management planning process has brought together consideration of the Council’s
Mission and Pledges which support the Community Plan, key drivers of change from the Strategic
and Best Value Performance Plan, Service Property Strategies and Directorates Service Plan
derived property requirements to produce the key property issues table shown in Appendix 3
This table sets out the Key Issues and their property implications together with a current position
statement and action required. This table is reviewed mid year and is updated as part of an annual
review process. New areas for change are added which are then prioritised through the Council’s
project appraisal process and built in to the Capital Programme and Capital Strategy as
appropriate.
B.
PROPERTY REVIEW AND RATIONALISATION
There are three processes driving the change in the Council’s operational property portfolio these
being: 


The Best Value Review of Property and Asset Management
Changes in service delivery
Area based property reviews
The key outcome from the Best Value Review of Property is the clearly established office
accommodation strategy setting out clear performance targets for occupancy levels and
rationalisation of building stock into four core sites and up to twenty satellite offices. Significant
progress is being made in reducing the number of buildings occupied, reducing running costs and
providing improved accommodation. – see section 4B
Changes in the way services are being delivered is having a significant impact. The Council is
working with Salford Primary Care Trust through the Salford LIFT Project to provide new buildings
to accommodate a range of Council, PCT and other services. These buildings will also provide
accommodation for the Council’s One Shops which is also being integrated with the PCT. In
addition Social Services are continuing to deliver other joint service delivery initiatives with the PCT
and Education in developing Children’s Centres proposals with for example Sure Start, with the
associated sharing of accommodation.
The area-based reviews assess the performance of property, its condition, suitability, sufficiency
and its market value. A review has been undertaken in Irlam and Cadishead, and Walkden and
Little Hulton are under way. This work has identified surplus property for disposal to support and
enhance the delivery of services. The appraisal model used in area-based reviews is shown in
Appendix 8
C.
OPTION ASSESSMENT
Option assessment is undertaken at both the strategic and project specific levels.
At the strategic level various options for dealing with the Council’s property requirements have
been considered as follows:






Continue current ownership and traditional procurement
Leasehold occupation
PFI
Sale and Leaseback
Transfer to Trust
Arms Length Management Organisations taking some responsibilities for property
No single option provides the solution to meet all the Council’s property requirements and different
options are selected dependant on circumstances.
29
Examples of the adoption of new solutions are the use of PFI for the replacement of schools, the
move to arms length management for the Council’s housing stock and transfer to trusts for elderly
persons homes and leisure centres. The Council has also increased its use of leasehold
occupation of office space, as an appropriate solution to meet shorter-term office needs.
At the project specific level different options are considered in order that the most effective option
can be brought forward for project appraisal and prioritisation.
D.
PROJECT APPRAISAL AND PRIORITISATION
High-level option appraisal is undertaken for major regeneration, service and infrastructure
proposals to establish the strategic direction for medium to long-term capital investment, with
options being presented to Cabinet members for decision
Having established preferred investment options the Council then prioritises its capital investment
according to whether it: 



Meets the Government's annual capital guideline for each major service;
Maximises available external funding;
Meets national, regional and local priorities;
Targets its key priority regeneration areas, i.e. Seedley/Langworthy, Higher and Lower
Broughton and Kersal/Charlestown, Chapel Street and renewal areas; and
Provides continuing support to the revenue budget.
The Council has over the past 12 months sought to develop a more objective means of assessing
its priorities for capital investment which embraces a wider range of assessment criteria, such as
the extent to which they satisfy health and safety requirements, contribute towards enhancing the
life of an asset, improve the environment, stimulate the local economy, reduce risk, engage
partners and consult with the public. As part of the prioritisation process it has been suggested that
weighting is placed upon the assessment criteria in terms of high, medium and low priorities, these
consist of the following:

High Priority
Mandatory requirement, maximises external resources or
whereby specific assets will be improved/used
 Medium Priority
Strategic Impact of the scheme and contribution towards the
key themes of the Community Plan
 Low Priority
Other relevant information required to assess prioritisation e.g.
revenue savings
With investment in regeneration areas being afforded the highest priority.
A model for assessing priorities has been developed and used by a cross-directorate group
comprising officer representatives of the Resource Planning Group for the 2003/04 capital
programme. To enable the effectiveness of schemes to be reviewed and assessed the appraisal
model also requires clear output /outcome targets to be identified.
The lessons learned from applying the model for the first time in 2003/04 have been used to shape
the process for 2004/05
E.
FINANCIAL PLANNING
A 5-year Capital Strategy sets out the Council’s spending plans and priorities, and forecasts how
they will be funded, taking into account expected borrowing approvals and grant availability from
the Government, forecasts of capital receipts and any other internally-generated funds. Capital
investment planning is linked to service planning by ensuring through the priority assessment
process that it supports the delivery of the outcomes required from the Community Plan,
directorate service plans, the Best Value Performance Plan and the Asset Management Plan,
whilst also ensuring that these plans are explicit in outlining major capital and revenue resource
implications.
The annual capital programme is refined in the light of actual funding announcements from the
Government, the updating of capital receipt forecasts and any emerging spending priorities, e.g. as
a result of new Government initiatives, which may not have been identified during the capital
investment planning process.
30
A spending profile is identified for each approved capital scheme and officers monitor actual cash
flow against the profile at monthly intervals during the year. Likewise, key milestones are identified
for each major capital receipt above £100,000 and monitored by the CPO and Head of Finance.
Monthly reports are made to members of Budget Committee and Cabinet on the financial and
physical progress with the capital programme and it’s funding. More detail of this process is
outlined in the Capital Strategy document section 8.
The introduction of the prudential borrowing code should allow better capital planning by
smoothing of timing imbalances caused in the past with borrowing and grant approvals and
completion of disposals for capital receipts. It should also facilitate the consideration of more
invest to save type proposals, which might have failed in the past due to the lack of available
funding.
F.
SHARED USE
The benefits to be derived from shared use between service directorates and with other bodies
have been accepted by the Council and are being positively progressed. Current examples include
shared use with the Salford PCT at the Cornerstone and at Burrows House and shared use with
the Job Shop, Community Home Care and Salford Community Venture at Salford Opportunities
Centre. The Council is developing further links with other bodies through the operation of the
Salford Partnership.
Work is most advanced in working with the Salford PCT particularly in connection with the Primary
Care Centre initiative and the LIFT project. New LIFT facilities are proposed in six locations within
Salford and the first schemes are programmed to commence in autumn 2004.
Joint working with the police is established with the intention of providing Police posts within
shared use premises where appropriate.
Shared use by service directorates is well established in various locations e.g. Ordsall Neighbourhood
Office and this principle is part of the Council’s office accommodation strategy.
G.
PLANNED MAINTENANCE AND BACKLOG REPAIRS
The backlog maintenance figures detailed on the context sheet show that the backlog is
substantial.
Addressing this backlog in order to deliver the Council’s condition target established as part of the
Best Value Review of Office Support Accommodation and to respond to the outcomes from the
work on condition priority gradings is a substantial challenge. Information on backlog and how this
is being addressed is reported to Directors Team and Members, is set out below and included in
the ODPM Performance Indicator 1b shown in Appendix 4
Housing
The Stock Condition survey report concluded that although the Council’s properties had been
reasonably well maintained within available resources, major capital investment has been lacking.
Consequently, a significant number of major components either have reached or are near to
reaching the end of their economic life and will require replacement in the short term.
The sample survey indicated that the total forecast expenditure to improve and maintain the stock
over 30-years is some £1.53bn. This equates to £52,593 per dwelling or £1,765 per dwelling per
annum. These costs are at November 2003 prices, they include building works and contract
preliminaries, but exclude professional fees, management costs and VAT. Professional fees and
management costs are expected to add a further c.10% to the major works and cyclical costs. With
the addition of professional fees and management costs the total 30-year costs could increase to
some £1.682 billion.
The full extent of investment needed to the stock to achieve and maintain the Decent Homes
Standard and to keep the building elements in a good state of repair, over the next ten years, is
estimated to be in the region of £443 million. Analysis has indicated that under current Council
policies the amount of investment resources available to the Housing Revenue Account over the
next 10 years is some £161 million. This leaves a funding gap of £282 million, or approximately
£9,760 per dwelling. If the Council were to change its policies in relation to usable right-to-buy
(RTB) receipts and Supported Capital Expenditure being recycled into housing investment, then
funding gap would probably reduce to some £232 million (£8,050 per dwelling).
31
It should be noted this analysis is based upon the stock within the HRA at the time of the survey, ie
28,877 dwellings, and the rate of right to buy sales at the time, which indicated a reduction in stock
by an estimated 3,100 homes over the next 10 years. Subsequent right to buy activity has
increased substantially and is currently running at around 860 per annum, although this may slow
again particularly if there is a sufficient rise in mortgage interest rates. While this will reduce the
extent of the total gap
An options appraisal will examine ways of meeting the investment resources needed through
ALMO, PFI, Transfer(s), or a mixed economy of provision, in ways that seek to meet tenants’ and
residents’ aspirations while being part of a coherent and sustainable HRA investment strategy.
Differences in investment requirements and in tenants’ and residents’ wishes in different parts of
the City Council’s housing stock will be taken into account in seeking to produce realistic proposals
and bids against government programmes and budgets.
Education
The most recent Education AMP condition data has identified a maintenance backlog of
approximately £72.2m, which is likely to increase when the suitability issues for schools have been
quantified. Funds, which have been secured, or are confidently, expected, will remove, over the
next three years, a further £45.2m of this backlog plus a significant number of suitability issues.
Such funds include Schools Devolved Formula Capital, NDS Modernisation, TCF, Supported
Borrowing & PFI credits to replace six high schools.
The first stage of the review of the school estate was to remove surplus places in the secondary
sector, which included replacing The Albion High school with a new school. This opened in
September 2003. The next stage is to replace Buile Hill, Hope and Harrop Fold High schools, using
PFI credits of £48m.
The DfES has ambitious plans to replace or refurbish, subject to funds being available, all
secondary schools within a 10 to 15 year time frame. Salford is seeking to be in the second wave
of this major capital investment,' Building Schools for the Future'. If successful this will help the
LEA accelerate the reduction to the condition backlog and remove all current suitability issues in
the secondary sector.
Other Directorates
The estimated cost of backlog repairs is £16.59m (excluding transport infrastructure, Housing and
Schools). This figure has been reduced from 16.59m in 2003/04. This reduction is the result of a
rationalisation and reduction in the Council’s total amount of property held planned maintenance
expenditure and the identification and securing of additional resources to deliver specific projects.
This approach will be continued though it’s considered that additional resources will be required if a
significant improvement in the condition of retained buildings is to be achieved.
H.
DISPOSAL POLICY
The operation of the Council’s surplus property policy has continued to be improved. This policy
also introduced a detailed decommissioning checklist to ensure that an appropriate and consistent
approach to decommissioning was adopted across all Council directorates.
The policy has been implemented through the operation of the RPG who are provided with an
option appraisal for each building that is declared surplus. The RPG recommendations are then
reported to the appropriate Lead Members for approval. The Lead Member for Property also
monitors progress monthly on the disposal of surplus assets against targets. The policy has
established a target for property to be disposed of within one year of it being declared surplus
unless there are specific reasons for a longer period e.g. where land or buildings are being
retained for regeneration purposes.
The effective operation of this policy improves performance by: 



Better decisions being taken through acting corporately
Reducing the amount of time properties are vacant.
Target setting and monitoring performance
Encouraging positive action to identify surplus property
32
5. KEY ISSUES – MAJOR CHALLENGES
The key challenges for the Council, which impact upon the property portfolio, are set out below.
A
SOCIAL SERVICES
There are significant challenges in delivering community and social care services in the city, given
high levels of health, economic, educational and social disadvantage experienced by many local
people.
To meet these challenges the development of partnership working with statutory, voluntary and
private sector providers is essential and there are examples of each where successful partnering is
assisting with the delivery of modern, integrated services.
The major example of these can be seen in the partnership arrangements with the NHS particularly
in the areas of integrated care for older people, learning difficulties, mental health, and therapy
services. These initiatives include the joint utilisation of buildings for service delivery and it is
anticipated further integration will be made.
The negotiations in respect of the transfer of Homes for Older People to Manchester Care are
nearing conclusion. As part of these, two homes closed in April, 2003 have been demolished to
give cleared sites to allow a prompt start on the development of new homes on the completion of
the contract negotiations. Pending the availability of these, Manchester Care are providing
residential care at two other Council owned homes which will close on completion of the new build.
Day care services for older people have been reviewed and the four existing buildings for these will
be retained. Investment to modernise these, particularly in respect of bathroom and toilet facilities
to meet the needs of the more dependent members of the community in a private and dignified
manner, is continuing. Day care services for people supported with learning difficulties and/or
physical disabilities are under continuing review with the aim of promoting social inclusion in the
community. This may in the longer-term result in a review of building needs in this area.
Significant investment has been made in recent years in improving the Directorate’s office
accommodation to provide both good working conditions and I.T. infrastructure. However, there
remain a number of office bases in need of improvement or, more probably, relocating in
accordance with the Council’s Office Accommodation Strategy.
The affect of these initiatives has already been seen on the Directorate’s property requirements
and it is anticipated future such innovation may further significantly impact upon the building bases
needed to support modern service delivery.
B
EDUCATION
The key challenge is to respond to the falling numbers of pupils and the need to reduce the
number of school places and address the substantial backlog of repairs, which includes buildings
that are not fit for purpose.
The LEA has adopted a joint approach with our schools regarding the use of Devolved Formula
Capital to help fund the removal of surplus places. The DfES threshold for major capital bids is set
at £400,000 and the Primary Review has identified a lot of minor schemes that will fall below this
threshold in value.
The Albion High School created by the amalgamation of Lowry and Kersal High schools moved
into the new school building in September 2003. The closure of the two old buildings has helped
the City meet its target of reducing the surplus places on the secondary sector.
A second PFI project to replace three mainstream high schools, will also help the city meet its
surplus place target, by closing one of the school buildings currently occupied.
A further challenge will be to accelerate the capital investment programme to modernise the school
estate, so that schools have high quality, flexible and suitable designs which are fully accessible
and secure providing accommodation catering for a wide range of users including parents, adult
33
learners, early years provision and support services and facilities supporting learning through ICT.
The LEA could be supported with this major challenge by the DfES who have plans to replace or
refurbish, subject to funds being available, all secondary schools within a 10 to 15 year time frame,
via their Building Schools for the future (BSF) capital investment strategy. Salford is therefore
seeking to be in the second wave of this major capital investment.
A key issue for the Early Years Service is the future of the 4 Early Years Centres that provide
education & care for 2 - 4 year olds. These centres are currently developing a range of activities to
support families with young people. As part of a review of the Early Years Services provided by the
city, consideration will be given to the development of these centres and that of children's centres
across the city, for which the Local Authority will have responsibility.
C
LEISURE SERVICES
13 of the City's leisure facilities were leased to Salford Community Leisure Limited (a new not for
profit organisation) for 15 years from the 1st October 2003. In addition a number of other facilities
are operated by Salford Community Leisure through a service level agreement.
The maintenance responsibilities between Salford Community Leisure and the City Council are
clearly defined in a management agreement with the majority of the responsibility remaining with
the council.
There are several capital schemes being developed to refurbish and enhance the City's leisure
facilities. These will be funded from a combination of sources including Council capital funding
with bids being considered within the Council’s prioritisation framework.
There will be key changes in library accommodation as a result of the LIFT project. This will result
in the modernisation of the service and allow for joint service development, as libraries will operate
from shared buildings. Libraries included in the first phase of the LIFT project are Swinton, Eccles,
Walkden and Pendleton.
D
HOUSING
There are significant potential changes in the way housing services are delivered and managed to
respond to governments change agenda. Changes have already been introduced to management
arrangements to facilitate the potential creation of an ‘Arms Length’ Housing Management
Company. The shadow company was introduced in September 2002.
Good practice indicates that there should be physical separation between the Arms Length
Company and the residual Monitoring Body. The physical location of the Monitoring Body, which is
merging with Chief Executive’s ‘Strategy and Regeneration’, will need to be agreed. This merger
should take place during the summer of 2003 and the opportunity to co-align both functions will be
assessed. Relocation to Swinton Civic Centre would assist in the overall management of the
housing service.
A call centre has been developed for key ALMO services, which will impact on office
accommodation requirements 2003.
Other key changes in Housing Services are as follows:
Homelessness and Housing Advice - new legislation enacted this year requires the Council to
fundamentally review its Homelessness Services. Modern and effective Homelessness Reception
Services will be required if the Council is to satisfy the Best Value Review planned for 2005. These
services are currently located at Halton House together with the ALMO's Asylum
Seekers/Supported Tenancies teams. However, the office accommodation is overcrowded and not
fit for purpose. If possible in the forthcoming One Stop Shops and LIFT facilities might be used to
deliver theses services across the city.
Supporting People - a fundamental change in the funding of Care and Support to Vulnerable
Groups is currently being introduced by a new Supporting People team that is based at Turnpike
House. The relationship between Housing, Community and Social Services, Probation and the
Health Services (specifically the PCT) is growing and strengthening. Consideration will need to be
34
given to growing a team to facilitate this cooperation and suitable accommodation will be required
for such a team,
Regulatory Reform of Private Sector Housing Renewal and the Housing Market Renewal Fund the most significant change in legislation associated with the renewal of Private Sector Housing will
be introduced in 2002. This is coupled with a significant move by government in recognising the
necessity for wholesale market renewal in older stock in the core of the conurbation. It is
anticipated that both changes will bring with them substantial resources and the need to manage
significant programmes. Additional accommodation will be required to place staff both in central
offices and in regeneration areas.
Senior Management Team – The senior management team of Housing Services is being
strengthened and requires additional office accommodation.
E
REGENERATION AND COMMUNITY STRATEGY
The City’s LSP has played a key role in the development of the Neighbourhood Renewal Strategy
which in turn has become an integral part of the Community Plan.
The Council’s regeneration priorities are clearly outlined in the Neighbourhood Renewal Strategy
(NRS) published in October 2002. It sets out the priorities for investment both across the city and
locally within neighbourhoods. It is apparent from all the indices used to measure levels of
deprivation that the traditional inner city areas experience the most severe problems.
The NRS reflects this situation and the framework for the Strategy is based on the following three
items:



Tackling areas of major change – focussed on Central Salford covering areas such as
Broughton, Seedley and Langworthy and Charlestown and Kersal.
Targeted action to stabilize communities in decline and maximise opportunity – focussed on
Salford West
Working with our communities to achieve change.
A significant element of this work in Central Salford, and to a lesser extent in Salford West is the
physical regeneration of these areas through redevelopment, refurbishment, remodelling and
environmental improvements. This will involve the Council in a significant programme of property
acquisitions, site assembly and the negotiation and securing of development agreements and land
sales to support the regeneration priorities.
The Central Salford initiative is progressing with negotiations underway to form a new model Urban
Regeneration Company through founding partners the City Council, the North West Development
Agency and English Partnerships. It is anticipated that this will bring in significant private and public
resources to assist the City’s successful regeneration, complementing the £44m that Housing Market
Renewal funding is bringing in up to 2005/06 initially.
F
ACCESS TO SERVICES
The Council is committed to improving public access to services
(i)
Call Centre
In line with demand for services, an integrated call centre approach has been implemented. This is
proving to be a considerable success in terms of improved access to service, improved productivity
and improved back office performance. There is evidence that this method of customer contact will
increase over the next three years compared with other access methods, including face-to-face
access. Driven forward by the Council’s “Think Customer”initiative it is evident that the range of
services integrated within the call centre will increase dramatically, and with it, the demands for
accommodation, as staff are moved from ‘back office’ to the call centre.
A total of 105 ftes are now employed on call centre duties (this included NPHL staff seconded to
the call centre). Because of accommodation constraints this is on split sites within the Civic Centre
complex. The premises at Elmstead have been at full capacity for some time, and this is
hampering expansion of the service to other areas. Additional call centre accommodation is now
required as a matter of urgency to permit expansion of the service to meet customer and service
demand and e-government targets.
35
(ii)
Face to Face
Although there is some evidence at national level that this access method is set to decrease, there
will continue to be situations when face to face access is the only suitable method for dealing with
certain types of enquiry. Currently personal visits are conducted from a wide range of outlets
within the City. These outlets do not always meet customer needs and have not been upgraded for
some years. Consequently options for improvement will be considered in conjunction with other
partners who are also changing the way they deliver face-to-face services. It is expected that joint
outlets within the LIFT project will help to resolve some of the current situation. It is expected that
implementation will take place over the next 2 years.
(iii)
Disability and Discrimination Act Compliance
The Disability and Discrimination Act 1995 puts a requirement on building owners/occupiers to
make services provided within buildings accessible to the public.
The council is undertaking access audits of all relevant buildings that will inform an improvement
plan to address access issues. Some works have already been undertaken and additional funding
will be required to role forward the improvement plan.
IMPACT ON THE PROPERTY PORTFOLIO
The key issues set out in A to F above have been considered and a more detailed breakdown of
their property implications and actions and programmes being undertaken to address them is
shown in Appendix 3.
It should also be noted that an underlying theme in these challenges is the need to address
previous underinvestment in the maintenance and renewal of physical assets. This applies to
Council assets particularly in the Education and Housing service areas which is being addressed
(see section 5G) and also in the private sector where the urban regeneration and community
strategy is assisting in addressing this problem.
As part of the ongoing asset management planning process the key issues and their property
implications are reviewed annually. The actions identified in Appendix 3. are monitored and
reviewed through the activity of the RPG and SPMU to identify any additional action required.
36
APPENDIX 1.
REPORTING STRUCTURE FOR RESOURCE PLANNING GROUP
AND STRATEGIC PROPERTY MANAGEMENT UNIT
CABINET
Lead Member
Director’s Team
ASSET MANAGEMENT PLAN
Resource Planning Group
Comprises senior representatives from
each directorate
SPMU
DIRECTORATES
CPO
37
APPENDIX 2
AIMS AND OBJECTIVES FOR PROPERTY
AND ASSOCIATED PERFORMANCE INDICATORS
AIM 1.
To Provide property to meet corporate and service directorate requirements as
efficiently, and economically as possible
OBJECTIVES
PERFORMANCE INDICATOR
To improve year on year with respect to a series
of key property performance indicators
To utilise space at a level of efficiency
commensurate with best practice taking into
account the limitations of the building stock
To retain only that service property which is
necessary to meet service and service users
needs
AIM 2.
Average running costs per M² for specific building
categories
Average M² per person measured using Net Internal
Area
Production of relevant Service Property Strategies
To improve the effectiveness of property in meeting service and service users needs
OBJECTIVES
To provide property that meets the needs of
users in terms of condition, quantity and
suitability
PERFORMANCE INDICATOR
The band of the Herriot Watt University variance tool
into which office accommodation falls measured by
customer surveys
User satisfaction with building maintenance
To ensure that buildings meet defined condition
standards and that the backlog of repairs is
reduced in accordance with a plan and timetable
To provide buildings in locations which are
readily accessible for staff and visitors
To improve disabled access and comply with
other statutory duties
% of operational and non-operational buildings that are
in condition category A to D
% Of workstations that are in buildings with adequate
car parking
% Of workstations that are in buildings that are in
buildings with public transport within 100m
% Of the buildings suitable for access by disabled
persons
AIM 3.
To ensure that property is fully recognised as a corporate asset and that it is managed
accordingly
PERFORMANCE INDICATOR
OBJECTIVES
To provide and support the working
Is there an Asset Management Plan that has been
arrangements necessary to produce effective
assessed as good or satisfactory
corporate asset management
Actively engage all directorates on strategic
Does the Resource Planning Group meet regularly and
property matters to the overall benefit of the
fulfil its role
Council
To ensure that where appropriate the Council’s property is used to support urban
regeneration initiatives and community well being
PERFORMANCE INDICATOR
OBJECTIVES
To identify where property can support and act
To identify all Council property in urban regeneration
as a catalyst in initiatives
areas
To identify the extent of the commercial estate
The amount of property within the Investment portfolio
occupied primarily to support community well
occupied primarily to support community well being
being objectives
objectives
AIM 4.
38
AIM 5.
To ensure that the investment portfolio provides both income and capital to help to
support the Council’s budgetary requirements
PERFORMANCE INDICATOR
OBJECTIVES
To set and achieve a target Internal Rate of
Target rate of return on the investment portfolio
Return (IRR) calculated in accordance with the
ODPM Property Performance Indicator No2
To optimise rental income through the estate
management activities undertaken
To meet the Council’s capital and revenue
The target for capital and revenue income
generation targets
To reduce voids
Occupancy levels of the investment portfolio
To reduce rent arrears
Rent arrears as a % of rent invoiced
AIM 6.
To provide a property service that meets the needs of clients in terms of quality costs
and timeliness
PERFORMANCE INDICATOR
OBJECTIVES
To improve the levels of client satisfaction in
Satisfaction with planned and programmed
relation to a set of agreed performance
maintenance / repairs
indicators
Satisfaction with property management
To provide clients with relevant property advice
to enable them to deliver their services efficiently
and effectively
Satisfaction with the Quaywatch scheme
To improve staff performance through providing
appropriate staff training development and
support to deal with a range of work
requirements likely to arise
Staff rating on dealing with underperformance
To improve the cost competitiveness of the
service through comparison and benchmarking
with other service providers together with the
introduction of appropriate targets and
improvements in practices
Costs of property management staff per M² of
operational buildings
Staff rating on training for job
39
KEY ISSUES
KEY ISSUES
Education
PROPERTY IMPLICATIONS
CURRENT POSITION
Surplus schools for disposal/other use
Secondary Review Completed Once Harrop Fold has moved
Complete by Sept 07
Closures are taking place. Works on onto one site in its new PFI
New Builds are to be carried out
building the implementation of
under PFI on existing sites.
the secondary review will be
completed. Deal with surplus
buildings by disposal or other
use.
Primary school review is complete & Implement outcomes of Primary Complete by 07
approved by Cabinet. Now in
review.
consultation period.
RC Diocesan Review still in
No action by City Council
Completion to be agreed
progress, but proposals have come
forward to remove surplus places in
5 primary schools
Schools surplus place review
Early Years Accommodation &
Children's Centres
Accommodation transferred from C&SS.
Children's centres review may identify
Review still in progress
need for new accommodation
Security for schools
Improved security can reduce repair
costs
Schools AMP
Suitability
Sufficiency
APPENDIX 3
FUTURE ACTION
TARGET DATE
Dependant on strategy and
funding
No target set
Some funding options identified.
Works have commenced on various
sites.
Reduction in number of schls and impvd New AMP prepared and approved
condition of remainder.
by the DfES. Priority works for this
Schools to be improved
financial year & all future years are
linked to Education's Capital
Investment strategy yet to receive
Lead Member approval.
Encourage school governing
bodies to fund security projects
using DFC.
There will be a rolling
programme of works for the
next 5 years based on the
priorities identified in the
Education AMP & Capital
Investment Strategy.
No target set
Transfer of C&SS buildings to
Still in negotiation with SureStart &
Education. Possibility that new build will Spurgeons regarding Management
also transfer to council ownership, but
Agreement/Leasing arrangement.
operated by Spurgeons.
Complete
Leasing/Management
agreements before new build
complete.
New build & refurbishment to be
completed sometime in 2006.
Conveyance of Broom Lane (ex
Jewish Proposers are proposing an
Brentnall Primary School) from the
application to the School
Council to Jewish proposers. This has to Organisation Committee (SOC) for
happen not later than 31st October
modifications of the existing SOC
2004.
approval. Which will include the
temporary relocation to the
Oakwood site from 1st January 2005
to a date early in 2006.
Irwell Park site currently leased from
Costing options still being
NDC. Proposal to relocate PRU
considered.
provision onto the site, to join Education
Welfare on a temporary basis for
approx. 2 years.
to replace/refurbish all secondary
notification awaited (Sept 04) from
schools over a 10 to 15 year period
DfES regarding the funding wave we
will be in.
Planning permission for Broom During in 2006
Lane site has now been
satisfied, but no further action
can be undertaken until SOC
has approved the
modifications.
All recommendation to be carried out
prior to April 09 in accordance with
Education's Capital Investment
Strategy & where possible linked to
the DfES 'Building Schools for the
Future' capital investment.
Condition
Little Hulton Sure Start
Children's Centre
Jewish High School
Potential relocation of PRU
provision
Building Schools for the Future
(BSF)
Approve option that gives Best During 2004
Value for money.
option appraisals are being
undertaken to identify sites.
no target can be set until DfES
advise the funding wave Salford will
be in.
KEY ISSUES
Leisure
Libraries Review
Working with LIFT project
SureStart support at Winton
PROPERTY IMPLICATIONS
3 neighbourhood libraries may relocate. 2 community libraries relocated
2 community libraries to be relocated.
Integration of Swinton, Eccles, Walkden
and Broadwalk Libraries into Primary
Care Centres
Redevelopment of Winton Library
Future of community based facilities
may be affected
Salford Museum & Art Gallery
KEY ISSUES
Environmental Services
Rationalisation of operational
depots
TARGET DATE
implement remaining outcomes Implementation 03/05
of plan when funding
opportunities arise
Deliver new accommodation on Complete 05
site
Complete works
Complete Sept 04
Respond to Broughton Master Implementation to be agreed
Plan and "connections agenda"
Identify programme of imps &
carry out works
Carry out both categories of
work as and when funds are
available
Complete by 04
PROPERTY IMPLICATIONS
CURRENT POSITION
FUTURE ACTION
TARGET DATE
Mess rooms in parks/bldgs to be
reviewed
Reduction in number of buildings
current service review may lead to
changes in property need
Swinton Cemetery Lodge sold.
Agecroft Cemetery Lodge under
review. The lodge is to form part of
the wider scheme in relation to the
burial chapel.
Some improvements completed and
work ongoing
Identify changes required and
draw up action plan
Implement outcome of Agecroft
Cemetery Lodge review as
appropriate
Complete review by end Dec 03
Commence action plan April 04
complete disposal if appropriate by
Mar 05
Identify further bldgs for
improvement and undertake
programme of works
Complete programme by Mar 06
Secure future of building
Physical upgrades to meet developing
usage. 2 Categories of work - remedial
& development
Sale of cemetery bldgs
Improvement of mess room
facilities
Schemes agreed in principal
FUTURE ACTION
Works commenced on site
Look at New Build or Refurbishment
for Broughton Library & North
Salford Youth Centre and at the
need for library in Lower
Broughton/Blackfriars. Potential
option identified. Need to draw up
business plan with partners to
obtain funding.
Conservation Plan completed &
upgrade works identified
Awaiting funding for both remedial
and development work
The Community Agenda
(Broughton Master Plan)
Ordsall Hall Museum
CURRENT POSITION
Improved building condition
Outcome of bids for capital funding
expected Autumn 04
41
KEY ISSUES
Housing
Arms Length
Management
PROPERTY IMPLICATIONS
CURRENT POSITION
TARGET DATE
Potentially separate
Currently sharing office Plan to consolidate at
headquarters may be required accommodation at
Turnpike House and
for New Prospect Housing Ltd. Turnpike Hse and
fewer satellite offices
various satellite offices.
Sep-04
There is insufficient office
space within the civic centre.
Complete moves
Jun-04
Stock option report to
inform Asset
Management Plan
Mar-04
Complete moves
Sep-04
Being consolidated in
Crompton Hse
including homeless /
housing advice centre
Stock option appraisals
Working party of
required by ODPM by July 05. officers & consultants
Asset Management This may result in the reduction are reviewing stock
of Public Sector
in the number of dwellings
options for the Housing
managed by the ALMO and
Revenue Account
housing stock.
therefore the office space it
Business Plan
requires
Potential requirement for more Proposals to move staff
Expansion of Private
staff and office accommodation to Crompton House in
Sector housing /
exchange with
Housing Market
Environmental Services
Renewal
Housing Services
merging with Chief
Execs.
FUTURE ACTION
42
KEY ISSUES
C&SS
PROPERTY IMPLICATIONS
Care Provision - Market Mix Inhouse/Independent
Reconfiguration of day care
services
CURRENT POSITION
Potential for surplus property for
Works progressing
disposal or transfer of responsibility to
third parties
Increased use of community based
strategies developed
services/activities leading to a reduced
dependency on buildings. Potentially
surplus properties for disposal or reuse.
Shared use of buildings/relinquishing
surplus property
FUTURE ACTION
TARGET DATE
The 2 homes providing interim Winter 2005/06
care will be surplus to
requirements
implement strategy and dispose TBA
of surplus assets
Rationalisation of community
facilities
Potential for surplus property for
disposal..
Consultation undertaken with Mental Funding identified for
Health Partnership to rationalise
improvement, at Cleveland
building use and improvements.
House and Prescott House to
facilitate integration between
CSSD and NHS staff.
However, Prescott House will
still be considered inadequate
for purpose and relocation in
the Little Hulton area is
desirable.
Review of usage and alternative
Continue review.
facilities in progress.
KEY ISSUES
Regeneration
PROPERTY IMPLICATIONS
CURRENT POSITION
FUTURE ACTION
TARGET DATE
Potential increase in demand for core
accommodation
Awaiting outcome of various
initiatives
On-going action
Using property to support regeneration
Respond to outcomes of
initiatives where
accommodation issues arise.
On-going action
Where need for properties is
identified then appropriate action is
taken
Acquisition of property to support
Continue acquisitions within
regeneration
established programmes
NHS Partnerships
Partnerships
funded staff
Externally
Government policy - community
involvement and action plans
New Deal for communities
Area regeneration - SRB
European Devel Zone
Central Salford – HMRF/NWDA
Regeneration of areas of both public
and private property
Aug-04
On-going.
On-going action
Upto Mar 2011
SRB5 –
Mar 2006
Dec 2008
Potential 10 year lifetime to 2013
43
KEY ISSUES
Corporate
PROPERTY IMPLICATIONS
CURRENT POSITION
FUTURE ACTION
Space required
Investigation undertaken but no
accommodation available
Potential use of homeworking Sep-04
within the Contact Centre
environment to be investigated
Call Centre
Deliver new accommodation on
site
Pursue potential acquisition of
Provision of new Magistrates
Police Station and Clinic.
Agree transfer of Bexley
Court /Justice Centre
Square
Need for physical works for IT intensive Survey complete and some works
Implement further action
Security for IT intensive work
uses may be location sensitive
carried out
required as and when funding
areas
available.
Could release office space
Document Management being
rationalisation of existing
Storage space review
trialed and impact on storage needs storage space.
being monitored
Surplus property to be identified and
Strategy reviewed. Need for
Implement agreed proposals
Office support accommodation appropriate moves within core sites and additional core accommodation
satellite offices
Identified. Some bldgs targeted for
review
Disposal.
Potential to reduce office
Space released by homeworking
Agree policies and identify
Work place strategies/ Home
accommodation generally.
being occupied by expanding staff areas for application and agree
working/Hot desking
numbers
implementation
Potential for surplus property for
3 partnerships developed between Further negotiations in respect
disposal or transfer of responsibility to Council and voluntary sector in
of future partnerships. Continue
Partnerships/Joint working with third party and sharing accommodation respect of running children's homes. joint working and identify
with partners
Joint working established through
opportunities for shared use of
other agencies
Salford Partnership. Discussions
buildings
ongoing re schools
Investment required to meet access
Some improvements undertaken
Prepare and implement
Disability and Discrimination Act
regulations
and further assessment and
improvement plan
Compliance
costings in progress
Customer Service Centres
Accommodation required
Provide accommodation in LIFT
centres
Suitable site required. Disposal/Re-use suitable site identified at Swinton
of existing site
Civic Centre Complex
TARGET DATE
Jan-06
Sept 04
During 2006
Completed
Work on-going
Sep-05
Implement 3- year programme
Outcomes will be Implemented over
5-years
Oct-04
44
KEY ISSUES
Development
Phase I & II BV Review of
Property and the property
service
Partnership with Private Sector
KEY ISSUES
Regeneration
Partnerships
funded staff
Externally
Government policy - community
involvement and action plans
New Deal for communities
Area regeneration - SRB
European Devel Zone
Central Salford – HMRF/NWDA
PROPERTY IMPLICATIONS
CURRENT POSITION
FUTURE ACTION
Reduction in property that does not
support service delivery requirements
Implement Action Plans and report
performance against Plan and PI's
May access resources to improve
assets
Preferred Bidder identified.
Negotiations of terms proceeding.
Complete works as set out in
Sep-05
Action Plans and report
performance
Obtain approval and enter into Jan/Mar 2005
partnershp
PROPERTY IMPLICATIONS
CURRENT POSITION
FUTURE ACTION
TARGET DATE
Potential increase in demand for core
accommodation
Awaiting outcome of various
initiatives
On-going action
Using property to support regeneration
Respond to outcomes of
initiatives where
accommodation issues arise.
On-going action
Where need for properties is
identified then appropriate action is
taken
Acquisition of property to support
Continue acquisitions within
regeneration
established programmes
Regeneration of areas of both public
and private property
TARGET DATE
On-going action
Upto Mar 2011
SRB5
– Mar 2006
Dec 2008
Potential 10 year lifetime to 2013
45
APPENDIX 4
Property Performance Indicator
ODPM pPI 1A
CIPFA Category
Percentage of gross internal floor area in
condition categories A-D
Other Land & Buildings
*For CIPFA breakdown Section 3 Data Management
Community
Actual
2002/03
A
B
C
D
Non-Operational (General)
Non-Operational Surplus
Value
ODPM pPI 1B
Backlog of maintenance by cost, expressed
i)
as total value
ii)
as a percentage in priority levels 1-3
Other Land & Buildings
Community
Non-Operational (General)
Non-Operational Surplus
ODPM pPI 2A, B & C
Internal Rate of Return for:
A= Industrial
B= Retail
C= Agricultural
ODPM pPI 3
Total annual strategic management cost per sq.m GIA for the portfolio
ODPM pPI 4A
Repair and maintenance costs per sq.m GIA
ODPM pPI 4B
Energy costs per sq.m GIA (gas, electricity, oil, solid fuel)
ODPM pPI 4C
Water costs per sq.m GIA
ODPM pPI 4D
CO2 emissions in tonnes of carbon dioxide per sq.m GIA
ODPM pPI 5A
Cost Predictability – % of projects where outturn falls within +/- 5% of the
estimated outturn, expressed as a % of the total number of projects completed
in the financial year
ODPM pPI 5B
Time Predictability - % projects falling within + 5% of the estimated timescale,
expressed as a % of the total number of projects completed
46
APPENDIX 5
USE OF NATIONAL PI ‘S
NATIONAL PROPERTY PI
1A and B
To measure the condition of property and
cost of backlog maintenance where the
Council has a repairing liability
2A, B and C
To measure the financial rate of return
from the industrial, retail and agricultural
investment portfolio
3
To measure strategic property
management costs for operational and
non-operational property
4A, B, C and D
To measure the running costs (Repairs
and Maintenance, Energy, Water and CO2
emissions) for operational buildings
USE OF DATA
In property appraisal when considering
changes to the portfolio and in allocating
funds within the revenue budget and
capital strategy
To compare the rate of return from
individual properties and categories of
properties against a target rate
To compare Salford’s strategic property
management costs with others.
Overall performance is compared with
other authorities and performance of
individual buildings is compared to identify
poor performance where remedial action
will be taken
5A and B
To monitor Salford’s performance and
To measure the delivery of capital projects identify need for changes if performance
within 5% of budget and estimated time
does not meet target
scale
EXPECTED
IMPROVEMENTS/OUTCOMES
Improving the condition of poor buildings
improving effective service delivery and
client satisfaction
Will guide decisions on disposals of
investment property, particularly where
performance is below target
That an appropriate level of strategic
property management activity is
undertaken.
Running costs will be minimised and CO2
emissions data will help Salford to meet
Climate Change Programme targets
through targeting action on poorly
performing buildings
Improvements in procurement process if
current performance does not meet target.
47
APPENDIX 6
RUNNING COSTS OF PORTFOLIO
48
APPENDIX 7
BEST VALUE REVIEWS/CPA IMPROVEMENT ACTIVITY
Current programme available for inspection / audit support
Best Value Reviews
Review Title
Support Older People at
Home
Support for people with
learning difficulties
Lead Directorate
Community & Social Services
Community & Social Services
Housing Repairs Review
Housing
Economic Development
Chief Executives
Residential Care for
Children
Inspection & Advisory
Service
Housing Planned
Maintenance
Outdoor Services &
Grounds Maintenance
Property Implications
Support for older people at home likely to remain
therefore no property implications for Council
Possible reduction in buildings used for day care
provision
Call Centre function being market tested. –
outcome could affect Salford Directs
accommodation requirements. Reduction in
satellite office staff has been implemented.
May affect investment estate holdings and
regeneration strategy
Community & Social Services
No property implications
Education & Leisure
No property implications
Housing
No implications for depot accommodation
Bereavement Services
Environmental Services
Home to School and Social
Care Transport
Education & Leisure/Social
Services
Building Control
Development Control and
Development Planning
Construction and Design
Youth Service
Culture, arts and heritage
Registration of births, deaths
and marriages
Public Protection
SAP
Safeguarding Children
Services to people with
physical & sensory
impairments
IT NET/Salford Advance
Development Services
May affect occupation/control of depot
accommodation
Outcome of heritage lottery funding application
may have implications for Agecroft cemetery
lodge
Administrative base for Central Passenger
Transport will be required (no impact on Turnpike
operating base)
No property implications
Development Services
No property implications
Development Services
Education & Leisure
Education & Leisure
May affect office accommodation requirements
May affect existing youth service property
Impact on existing museums & galleries
Corporate services
May affect Kingslea
Environmental Services
Corporate services
Community & Social Services
Possible office accommodation issues (minor)
No Property implications
No property implications
Community & Social Services
No property implications
Corporate Services
Possible accommodation issues
Environmental Services
49
CPA IMPROVEMENT ACTIVITIES – 2004/05
PROPERTY IMPLICATIONS
Priority for improvement
Corporate improvement plan
Education – review of primary school places
Education – Early years childcare to be
available to all
Libraries and leisure – improvements to the
quality of Salford’s libraries
Libraries and leisure – improving the quality of
leisure facilities
Development – move to JVC for development
services
Generally
Property Implications
Minimal property implications. Any implications
largely around staffing and therefore office
accommodation which will be considered in line
with the authority’s approach to office
accommodation
Potential implications for numbers of primary
schools and /or uses of surplus space
Potential property implications to provide
accommodation for childcare places
Property issues arising from inclusion of libraries
within
LIFT scheme
Potential property implications arising from work
of the leisure trust to attract investment
Potential office accommodation implications
Directorate improvement plans include a
plethora of both process and service delivery
improvements, some of which may lead to
staffing implications and consequently office
accommodation implications as the
improvements are worked through and
implemented. All such developments will be
considered in line with the authority’s approach
to office accommodation.
50
APPENDIX 8
PROPERTY APPRAISAL MODEL
Assessment Criteria
OMV
-
Estimated
Realisation Price
Appraisal Process
Cost of relocation to
suitable alternative
accommodation
exceed OMV ?
NO
Internal Space
Support Space
Location
Access
MEETS CRITERIA
NO
INVEST TO MEET
CRITERIA
YES
YES
MEETS CRITERIA
IMPROVE
UTILISATION
NO
SUFFICIENCY
-
Is sufficient
Well used
Under used
Vacant space
NO
YES
YES
MEETS CRITERIA
INVEST TO MEET
CRITERIA
NO
CONDITION
-
Category A – D
Backlog
maintenance
priority 1 – 3 £
NO
YES
YES
MEETS CRITERIA
INVEST TO MEET
CRITERIA
RUNNING COSTS
-
Maintenance
Energy
Water
CO² Emissions
NO
YES
NO
OR REUSED IF APPROPRIATE
-
PREMISES SOLD, LEASED
SUITABILITY
AGREE RELOCATION OF STAFF TO SUITABLE PREMISES
YES
IDENTIFY COSTS
AND FUNDING AND
BUILD INTO WORKS
PROGRAMME
PROPERTY RETAINED
51
APPENDIX 9
ACHIEVEMENTS
ACHIEVEMENT
RESULT
Establishing a Strategic Property Management Unit
Ensuring that corporate asset management is achieved
Establishing a Corporate property Officer
Responsible officer for ensuring corporate asset management takes place
Establishing a Lead Member for Property
Ensures a Council focus and member responsibility for property matters
Establishing an intranet site providing information and promoting
corporate asset management
Promotes awareness across the whole council
Operation of Environmental Scrutiny Committee
Involves member involvement in target setting, monitoring performance
and driving improvement
Integrated working of Asset Management Group and Budget Planning
Group through common officer representation
Integrated asset and financial planning
Completion of condition surveys and priority assessments
Accurate condition data and backlog maintenance assists property
appraisal and financial planning
Established five year rolling programme of re-surveys
Programmed updating of information
Introduction and operation of Surplus Property Policy
Surplus property dealt with in effective corporate way
Introduction of property requirements database
Matches property needs to property available
Established Property Strategy and Aims and Objectives for Property
derived from corporate Mission and Pledges
Establishes clear principles for holding property
Developed local pPI’s and targets to measure success in achieving
objectives
Establishes targets monitors and measures improvements
Benchmarking introduced – Core Cities, AGMA, ACES, Sheffield Hallam
University
Enables comparison with others and assists in target setting
Completed Property and Asset Management BV Review and
implementing the Action plans
Identified improvements required in property and the service being
implemented
Established performance reporting for office portfolio
Officer and member monitoring performance
Identification of running costs of the whole portfolio and cost per M²
Identifies areas of high costs and areas for improvement
Property performance reported to Directors
Raises awareness of property costs and performance and encourages
improvement
Data needs identified
Only data required for property management and performance analysis
collected
Accurate database of core and transient data established
Enables effective management of portfolio and performance assessment
UPRN established
Allows unique cross referencing of properties throughout the council
Storage Space Review
Raises awareness of costs, selected short term option to reduce storage
space needs
Option appraisal introduced and being developed
Better resource allocation to meet priorities
Shared use of property with other organisation taking place
Improves service delivery and efficiency in use of buildings
Building occupier and user surveys introduced
Identifies occupier and user perception and needs to influence resource
allocation
Suitability surveys introduced
Assist property appraisal and resource allocation
Area based reviews being implemented
Promotes property rationalisation, shared use and efficient use of
buildings
Occupier survey of quality of FM services
Assist improvement in FM service
Gap analysis used in property strategy development
Property strategy will properly address future needs
Establishment and operation of the Resource Planning Group
Brings together in one corporate group finance and asset management
planning
Achieving improved practices for dealing with surplus property
Cost savings will be achieved
Reduction in amount of operational property
Savings proposals, running costs and generation of capital receipts
Reduction in amount of surplus property
Savings in maintenance, running costs and generation of capital receipts
Achieving a ‘good’ assessment in the corporate AMP CIS and Education
AMP
Government recognition of good practice produces financial rewards and
freedoms
Significant reduction in schools backlog maintenance
Will improve teaching and learning through creating improved building
environment
Establishment of a staff training facility at Broadwalk
Will permit disposal/reuse of existing accommodation
52
ACHIEVEMENT
Establishment of Leisure Trust to operate and manage leisure facilities
RESULT
Focus on improving facilities and improved service to customers
Production of Service Property Strategies (SPS’s) for: 




Youth Service
Library and Information Service
Residential Day Care and Community Services
Office Support Services
Sports and Leisure Services
Better awareness and understanding of property performance and
defining of works to and changes in services property occupiers
Completion of Primary Schools Review
National Property PI performance comparison through IPF AMP
Benchmarking Group
Comparison with other local authorities enables poor performance to be
identified and addressed
Introduction of Post Project evaluation
Will assist improved project procurement
Introduction of Home Working principally in revenues and benefits
Reduces pressure for core office accommodation
Space for Sports and Arts at four school sites successfully provided
Improved facilities provided
Accommodation changes for Democratic Services successfully provided
Appropriate accommodation to meet changes in service requirements
Accommodation changes for GMPA at Civic Centre successfully
provided
Appropriate accommodation to meet changes in service requirements
53
APPENDIX 10
AMP ASSESSMENT CRITERIA REFERENCING
Primary Criteria
Ref
1.1
1.2
1.3
1.4
1.5
1.6
Ref
2.1
2.2
2.3
2.4
Ref
3.1
3.2
3.3
Ref
4.1
4.2
4.3
4.4
1. Organisational arrangements for corporate asset management
A Corporate Property Officer (CPO) has been identified with authority to undertake all required
developments in asset management.
Roles and responsibilities for the CPO (as indicated by the prevailing guidance) are clearly set out,
explicit and have been communicated to all those concerned, in property management and use,
throughout the authority.
The CPO reports and is accountable to a strategic, decision-making group both at officer and
member levels.
Clear evidence has been provided that a cross-service, senior management forum has been set up
which includes the CPO, representatives from major services and, where appropriate, the finance
directorate and officers involved in the development of the Capital Strategy and the Community Plan
(or its equivalent).
The forum has formal terms of reference that includes the strategic management of the Council’s
assets.
Evidence that the forum:
- Progresses the corporate Asset Management Plan and ensures that it is approved
by senior officers and the Council;
- Ensures that the AMP is informed by and supports other key corporate and service plans and
objectives;
- Meets regularly (at least twice a year or more often as may be appropriate).
2. Data Management
CPO has ensured that a record is held and maintained of basic, core data on all the Council's
property.
The validity of this information has been tested.
AMP can demonstrate a clear understanding of the data required to manage the performance of the
property portfolio.
Statistical information on the overall condition of the portfolio (condition categories: A-D/1-3) and
maintenance backlogs is included in the AMP.
3. Performance Management, Monitoring & Information
The CPO submits a formal report to Members and Chief Officers at least annually on the
performance of the property portfolio, which now includes performance outcomes in relation to the
ODPM National pPIs.
The AMP includes information showing how the authority is performing in relation to all five national
pPIs.
Members are informed, as part of overall budget and performance monitoring, of the progress and
performance of the capital programme.
4. Programme and Plan Development and Implementation
The AMP outlines the council’s property related requirements and outlines the proposed
programmes which are intended to meet these requirements.
CPO has demonstrated that there is a methodology for option appraisal and corporate prioritising
between projects.
A 3 year capital programme is developed including a forecast of the planned capital receipts.
Output/outcome targets are set for programmes and plans requiring capital investment.
AMP
Para Ref
1.D
1.D
1.D & APP.1
1.B
1.B
1.B
1.F
1.G
1.B
AMP
Para Ref
3.A
3.B
3.B
4.D
3.C
APP.4
AMP
Para Ref
4.A
4.D AND APP.4
5.E
AMP
Para Ref
6 AND APP.3
5.D
5.E
5.D
54
Secondary Criteria
Ref
1.
2
3
4
5
6
Ref
7
8
Ref
9
10
11
12
13
14
Ref
15
16
17
18
19
20
21
Ref
22
23
24
25
26
AMP
Para ref
Organisational arrangements for corporate asset management
Evidence that the CPO / Asset Management Forum routinely challenges and reviews the use,
provision and performance of the council’s assets and its related property services, in order to
achieve the most effective management, planning and use of these assets. Key findings and
outcomes are reported to Chief Officers and the Council.
Evidence that the CPO / Asset Management Forum takes into account stakeholder satisfaction
information relating to property and property services.
A cabinet member (or lead committee member) holds responsibilities for the authority’s property
resource on behalf of the council.
The CPO is involved in the preparation of the Capital Strategy and contributes to the work of other
relevant corporate and business planning groups.
There are references to the property asset implications in corporate policies and strategies such as
the Best Value Performance Plan, Best Value Reviews, the Capital Strategy, the Community Plan
and LPSAs.
There is evidence of cross service use, shared use and/or co-location of property resources within
the authority and with other organisations.
1.B
2 and 2.B
1.E
1.D
1.F, 1.G, 1H
2A, 2C
5.F
AMP
Para ref
Consultation
Evidence that processes are being developed to obtain feedback from services, users and occupiers.
Evidence that consultation findings are used to influence the continuous improvement of property
and property services performance.
Data Management
CPO has undertaken a full survey of future data requirements for the
property portfolio.
CPO has identified a programme of necessary improvements
CPO has commenced development of a data system for “intermediate” data (i.e. property data which
requires updating from time to time such as condition, rents and user details)
CPO has implemented Unique Property Reference number (UPRN) system or set out detailed
reasons why any alternative property referencing approach is considered more appropriate.
CPO has developed an approach for the centralised co-ordination of property management
information and its integration with relevant Council financial information.
CPO has undertaken a review of training needs for users of the data and set in place a system for
satisfying those needs.
Performance Management, Monitoring & Information
Clear evidence that the CPO is developing and using a set of local performance measures in relation
to assets that link asset use to corporate objectives.
Clear evidence that the CPO is developing a process to enable the comparison of the performance
and competitiveness of property and property services with other similar organisations and other
providers.
Clear evidence that the development of performance measures and monitoring takes into account
stakeholder consultation and user satisfaction findings.
Clear evidence that performance measurement feeds into a process of
continuous improvement.
Local Performance Indicators are in place and being used for measuring and Monitoring the amount
of surplus property and space utilisation.
A written report is produced for Members and Chief Officers on any maintenance backlog
recommending appropriate action.
The CPO is collecting information on the “suitability” of the various categories of the portfolio for their
current and future use.
Programme and Plan Development and Implementation
The AMP demonstrates that the Council has identified the implications for property, which arise from
the Council’s objectives.
The AMP demonstrates service wide understanding of corporate ownership of assets.
The AMP demonstrates that the Council has undertaken a thorough investigation and analysis of the
gaps between future requirements and the current provision and performance of the authority’s
present property assets.
The Council has identified and appraised the options for closing these gaps.
The AMP outlines the Council’s approved 3 – 5 year strategic action plan based on this analysis.
2
2.B
AMP
Para ref
3.E
3.E
3.B, 3.C
3.E
3.B, 3.E
3.E
AMP
Para ref
1.F, 4.A
Appendix 2
1.H, 4.A
4A &
Appendix 2
4.B
4.A, 4.C
5.G
2.B, 5B
AMP
Para ref
5.A, 1.F
1.A, 1.B, 1.F
6 & Appendix 3
"
"
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